Correlation Between Candel Therapeutics and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Candel Therapeutics and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Regeneron Pharmaceuticals.
Diversification Opportunities for Candel Therapeutics and Regeneron Pharmaceuticals
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Candel and Regeneron is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regeneron Pharmaceuticals has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Regeneron Pharmaceuticals
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 10.02 times more return on investment than Regeneron Pharmaceuticals. However, Candel Therapeutics is 10.02 times more volatile than Regeneron Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about 0.01 per unit of risk. If you would invest 189.00 in Candel Therapeutics on September 5, 2024 and sell it today you would earn a total of 262.00 from holding Candel Therapeutics or generate 138.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Candel Therapeutics |
| Regeneron Pharmaceuticals |
Candel Therapeutics and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Regeneron Pharmaceuticals
The main advantage of trading using opposite Candel Therapeutics and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals will offset losses from the drop in Regeneron Pharmaceuticals' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |