Correlation Between CytomX Therapeutics and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics 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 CytomX Therapeutics and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Candel Therapeutics, you can compare the effects of market volatilities on CytomX Therapeutics 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 CytomX Therapeutics with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Candel Therapeutics.
Diversification Opportunities for CytomX Therapeutics and Candel Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CytomX and Candel is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and CytomX 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 CytomX Therapeutics 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 CytomX Therapeutics i.e., CytomX Therapeutics and Candel Therapeutics go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Candel Therapeutics
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 0.66 times more return on investment than Candel Therapeutics. However, CytomX Therapeutics is 1.52 times less risky than Candel Therapeutics. It trades about 0.1 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 101.00 in CytomX Therapeutics on September 4, 2024 and sell it today you would earn a total of 8.00 from holding CytomX Therapeutics or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Candel Therapeutics
Performance |
| Timeline |
| CytomX Therapeutics |
| Candel Therapeutics |
CytomX Therapeutics and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Candel Therapeutics
The main advantage of trading using opposite CytomX Therapeutics and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics 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.| CytomX Therapeutics vs. Candel Therapeutics | CytomX Therapeutics vs. Cingulate Warrants | CytomX Therapeutics vs. Unicycive Therapeutics | CytomX Therapeutics vs. Cardio Diagnostics Holdings |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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