Correlation Between Emergent Biosolutions and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Emergent Biosolutions 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 Emergent Biosolutions and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emergent Biosolutions and Candel Therapeutics, you can compare the effects of market volatilities on Emergent Biosolutions 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 Emergent Biosolutions with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emergent Biosolutions and Candel Therapeutics.
Diversification Opportunities for Emergent Biosolutions and Candel Therapeutics
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emergent and Candel is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Emergent Biosolutions and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Emergent Biosolutions 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 Emergent Biosolutions 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 Emergent Biosolutions i.e., Emergent Biosolutions and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Emergent Biosolutions and Candel Therapeutics
Considering the 90-day investment horizon Emergent Biosolutions is expected to generate 1.19 times more return on investment than Candel Therapeutics. However, Emergent Biosolutions is 1.19 times more volatile than Candel Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 877.00 in Emergent Biosolutions on September 4, 2024 and sell it today you would earn a total of 52.00 from holding Emergent Biosolutions or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emergent Biosolutions vs. Candel Therapeutics
Performance |
| Timeline |
| Emergent Biosolutions |
| Candel Therapeutics |
Emergent Biosolutions and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emergent Biosolutions and Candel Therapeutics
The main advantage of trading using opposite Emergent Biosolutions and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emergent Biosolutions 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.| Emergent Biosolutions vs. Candel Therapeutics | Emergent Biosolutions vs. Cingulate Warrants | Emergent Biosolutions vs. Unicycive Therapeutics | Emergent Biosolutions 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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