Correlation Between Cardio Diagnostics and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cardio Diagnostics and Candel 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 Cardio Diagnostics and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardio Diagnostics Holdings and Candel Therapeutics, you can compare the effects of market volatilities on Cardio Diagnostics and Candel 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 Cardio Diagnostics with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardio Diagnostics and Candel Therapeutics.
Diversification Opportunities for Cardio Diagnostics and Candel Therapeutics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardio and Candel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Cardio Diagnostics 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 Cardio Diagnostics Holdings are associated (or correlated) with Candel Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Candel Therapeutics has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Cardio Diagnostics and Candel Therapeutics
Given the investment horizon of 90 days Cardio Diagnostics is expected to generate 1.64 times less return on investment than Candel Therapeutics. In addition to that, Cardio Diagnostics is 1.02 times more volatile than Candel Therapeutics. It trades about 0.03 of its total potential returns per unit of risk. Candel Therapeutics is currently generating about 0.05 per unit of volatility. If you would invest 209.00 in Candel Therapeutics on August 30, 2024 and sell it today you would earn a total of 286.00 from holding Candel Therapeutics or generate 136.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cardio Diagnostics Holdings vs. Candel Therapeutics
Performance |
| Timeline |
| Cardio Diagnostics |
| Candel Therapeutics |
Cardio Diagnostics and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardio Diagnostics and Candel Therapeutics
The main advantage of trading using opposite Cardio Diagnostics and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardio Diagnostics position performs unexpectedly, Candel 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 Candel Therapeutics will offset losses from the drop in Candel Therapeutics' long position.| Cardio Diagnostics vs. Bright Minds Biosciences | Cardio Diagnostics vs. HP Inc | Cardio Diagnostics vs. Intel | Cardio Diagnostics vs. Chevron Corp |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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