Correlation Between Candel Therapeutics and Vivani Medical
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Vivani Medical 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 Vivani Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Vivani Medical, you can compare the effects of market volatilities on Candel Therapeutics and Vivani Medical 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 Vivani Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Vivani Medical.
Diversification Opportunities for Candel Therapeutics and Vivani Medical
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Candel and Vivani is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Vivani Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivani Medical 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 Vivani Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivani Medical has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Vivani Medical go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Vivani Medical
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 1.13 times more return on investment than Vivani Medical. However, Candel Therapeutics is 1.13 times more volatile than Vivani Medical. It trades about 0.06 of its potential returns per unit of risk. Vivani Medical is currently generating about 0.03 per unit of risk. If you would invest 152.00 in Candel Therapeutics on September 13, 2024 and sell it today you would earn a total of 623.00 from holding Candel Therapeutics or generate 409.87% 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. Vivani Medical
Performance |
| Timeline |
| Candel Therapeutics |
| Vivani Medical |
Candel Therapeutics and Vivani Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Vivani Medical
The main advantage of trading using opposite Candel Therapeutics and Vivani Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Vivani Medical 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 Vivani Medical will offset losses from the drop in Vivani Medical's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Vivani Medical vs. PepGen | Vivani Medical vs. Tyra Biosciences | Vivani Medical vs. Entrada Therapeutics | Vivani Medical vs. Pharvaris BV |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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