Correlation Between Fortress Biotech and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech 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 Fortress Biotech and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and Candel Therapeutics, you can compare the effects of market volatilities on Fortress Biotech 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 Fortress Biotech with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Candel Therapeutics.
Diversification Opportunities for Fortress Biotech and Candel Therapeutics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortress and Candel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Fortress Biotech 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 Fortress Biotech 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 Fortress Biotech i.e., Fortress Biotech and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Fortress Biotech and Candel Therapeutics
Given the investment horizon of 90 days Fortress Biotech is expected to under-perform the Candel Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Fortress Biotech is 2.51 times less risky than Candel Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The Candel Therapeutics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 173.00 in Candel Therapeutics on September 12, 2024 and sell it today you would earn a total of 1,178 from holding Candel Therapeutics or generate 680.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Biotech vs. Candel Therapeutics
Performance |
| Timeline |
| Fortress Biotech |
| Candel Therapeutics |
Fortress Biotech and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Candel Therapeutics
The main advantage of trading using opposite Fortress Biotech and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech 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.| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Achilles Therapeutics PLC | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |