Correlation Between Candel Therapeutics and XTL Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and XTL Biopharmaceutica 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 XTL Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and XTL Biopharmaceuticals Ltd, you can compare the effects of market volatilities on Candel Therapeutics and XTL Biopharmaceutica 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 XTL Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and XTL Biopharmaceutica.
Diversification Opportunities for Candel Therapeutics and XTL Biopharmaceutica
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Candel and XTL is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and XTL Biopharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals 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 XTL Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTL Biopharmaceuticals has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and XTL Biopharmaceutica go up and down completely randomly.
Pair Corralation between Candel Therapeutics and XTL Biopharmaceutica
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 4.41 times more return on investment than XTL Biopharmaceutica. However, Candel Therapeutics is 4.41 times more volatile than XTL Biopharmaceuticals Ltd. It trades about 0.2 of its potential returns per unit of risk. XTL Biopharmaceuticals Ltd is currently generating about 0.05 per unit of risk. If you would invest 465.00 in Candel Therapeutics on September 12, 2024 and sell it today you would earn a total of 310.00 from holding Candel Therapeutics or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. XTL Biopharmaceuticals Ltd
Performance |
| Timeline |
| Candel Therapeutics |
| XTL Biopharmaceuticals |
Candel Therapeutics and XTL Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and XTL Biopharmaceutica
The main advantage of trading using opposite Candel Therapeutics and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, XTL Biopharmaceutica 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 XTL Biopharmaceutica will offset losses from the drop in XTL Biopharmaceutica's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| XTL Biopharmaceutica vs. Benitec Biopharma Ltd | XTL Biopharmaceutica vs. Xenetic Biosciences | XTL Biopharmaceutica vs. ProPhase Labs | XTL Biopharmaceutica vs. BOS Better Online |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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