Correlation Between Gamida Cell and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Gamida Cell 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 Gamida Cell and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and Candel Therapeutics, you can compare the effects of market volatilities on Gamida Cell 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 Gamida Cell with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and Candel Therapeutics.
Diversification Opportunities for Gamida Cell and Candel Therapeutics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamida and Candel is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Gamida Cell 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 Gamida Cell 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 Gamida Cell i.e., Gamida Cell and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Gamida Cell and Candel Therapeutics
If you would invest 140.00 in Gamida Cell on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Gamida Cell or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Gamida Cell vs. Candel Therapeutics
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Candel Therapeutics |
Gamida Cell and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and Candel Therapeutics
The main advantage of trading using opposite Gamida Cell and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell 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.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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