Correlation Between Amicus Therapeutics and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Amicus 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 Amicus 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 Amicus Therapeutics and Candel Therapeutics, you can compare the effects of market volatilities on Amicus 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 Amicus Therapeutics with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amicus Therapeutics and Candel Therapeutics.
Diversification Opportunities for Amicus Therapeutics and Candel Therapeutics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amicus and Candel is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amicus Therapeutics and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Amicus 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 Amicus 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 Amicus Therapeutics i.e., Amicus Therapeutics and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Amicus Therapeutics and Candel Therapeutics
Given the investment horizon of 90 days Amicus Therapeutics is expected to under-perform the Candel Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Amicus Therapeutics is 3.32 times less risky than Candel Therapeutics. The stock trades about -0.32 of its potential returns per unit of risk. The Candel Therapeutics is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 519.00 in Candel Therapeutics on September 5, 2024 and sell it today you would lose (76.00) from holding Candel Therapeutics or give up 14.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amicus Therapeutics vs. Candel Therapeutics
Performance |
| Timeline |
| Amicus Therapeutics |
| Candel Therapeutics |
Amicus Therapeutics and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amicus Therapeutics and Candel Therapeutics
The main advantage of trading using opposite Amicus Therapeutics and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amicus 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.| Amicus Therapeutics vs. Candel Therapeutics | Amicus Therapeutics vs. Cingulate Warrants | Amicus Therapeutics vs. Unicycive Therapeutics | Amicus 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |