Correlation Between FibroGen and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both FibroGen 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 FibroGen and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibroGen and Candel Therapeutics, you can compare the effects of market volatilities on FibroGen 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 FibroGen with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibroGen and Candel Therapeutics.
Diversification Opportunities for FibroGen and Candel Therapeutics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FibroGen and Candel is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding FibroGen and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and FibroGen 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 FibroGen 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 FibroGen i.e., FibroGen and Candel Therapeutics go up and down completely randomly.
Pair Corralation between FibroGen and Candel Therapeutics
Given the investment horizon of 90 days FibroGen is expected to generate 5.43 times less return on investment than Candel Therapeutics. But when comparing it to its historical volatility, FibroGen is 1.99 times less risky than Candel Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Candel Therapeutics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Candel Therapeutics on September 4, 2024 and sell it today you would earn a total of 364.00 from holding Candel Therapeutics or generate 418.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FibroGen vs. Candel Therapeutics
Performance |
| Timeline |
| FibroGen |
| Candel Therapeutics |
FibroGen and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibroGen and Candel Therapeutics
The main advantage of trading using opposite FibroGen and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibroGen 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.| FibroGen vs. Candel Therapeutics | FibroGen vs. Cingulate Warrants | FibroGen vs. Unicycive Therapeutics | FibroGen 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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