Correlation Between Equillium and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Equillium 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 Equillium and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and Candel Therapeutics, you can compare the effects of market volatilities on Equillium 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 Equillium with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and Candel Therapeutics.
Diversification Opportunities for Equillium and Candel Therapeutics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Equillium and Candel is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Equillium 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 Equillium 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 Equillium i.e., Equillium and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Equillium and Candel Therapeutics
Allowing for the 90-day total investment horizon Equillium is expected to generate 0.81 times more return on investment than Candel Therapeutics. However, Equillium is 1.23 times less risky than Candel Therapeutics. It trades about -0.02 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 75.00 in Equillium on September 4, 2024 and sell it today you would lose (4.00) from holding Equillium or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equillium vs. Candel Therapeutics
Performance |
| Timeline |
| Equillium |
| Candel Therapeutics |
Equillium and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and Candel Therapeutics
The main advantage of trading using opposite Equillium and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium 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.| Equillium vs. Candel Therapeutics | Equillium vs. Cingulate Warrants | Equillium vs. Unicycive Therapeutics | Equillium 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |