Correlation Between Candel Therapeutics and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Sellas Life 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 Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Sellas Life Sciences, you can compare the effects of market volatilities on Candel Therapeutics and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Sellas Life.
Diversification Opportunities for Candel Therapeutics and Sellas Life
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Candel and Sellas is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Sellas Life go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Sellas Life
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 3.49 times more return on investment than Sellas Life. However, Candel Therapeutics is 3.49 times more volatile than Sellas Life Sciences. It trades about 0.08 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about 0.04 per unit of risk. If you would invest 87.00 in Candel Therapeutics on September 4, 2024 and sell it today you would earn a total of 364.00 from holding Candel Therapeutics or generate 418.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Sellas Life Sciences
Performance |
| Timeline |
| Candel Therapeutics |
| Sellas Life Sciences |
Candel Therapeutics and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Sellas Life
The main advantage of trading using opposite Candel Therapeutics and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Sellas Life vs. Candel Therapeutics | Sellas Life vs. Cingulate Warrants | Sellas Life vs. Unicycive Therapeutics | Sellas Life 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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