Correlation Between Candel Therapeutics and PTC Therapeutics
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and PTC Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Candel Therapeutics and PTC Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and PTC Therapeutics, you can compare the effects of market volatilities on Candel Therapeutics and PTC Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Candel Therapeutics with a short position of PTC Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and PTC Therapeutics.
Diversification Opportunities for Candel Therapeutics and PTC Therapeutics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Candel and PTC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and PTC Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTC Therapeutics and Candel Therapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Candel Therapeutics are associated (or correlated) with PTC Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTC Therapeutics has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and PTC Therapeutics go up and down completely randomly.
Pair Corralation between Candel Therapeutics and PTC Therapeutics
Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the PTC Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Candel Therapeutics is 1.02 times less risky than PTC Therapeutics. The stock trades about -0.16 of its potential returns per unit of risk. The PTC Therapeutics is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,499 in PTC Therapeutics on September 5, 2024 and sell it today you would earn a total of 1,487 from holding PTC Therapeutics or generate 42.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. PTC Therapeutics
Performance |
| Timeline |
| Candel Therapeutics |
| PTC Therapeutics |
Candel Therapeutics and PTC Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and PTC Therapeutics
The main advantage of trading using opposite Candel Therapeutics and PTC Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, PTC Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PTC Therapeutics will offset losses from the drop in PTC Therapeutics' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| PTC Therapeutics vs. Candel Therapeutics | PTC Therapeutics vs. Cingulate Warrants | PTC Therapeutics vs. Unicycive Therapeutics | PTC Therapeutics vs. Cardio Diagnostics Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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