Correlation Between Genelux Common and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Genelux Common 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 Genelux Common and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genelux Common and Candel Therapeutics, you can compare the effects of market volatilities on Genelux Common 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 Genelux Common with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genelux Common and Candel Therapeutics.
Diversification Opportunities for Genelux Common and Candel Therapeutics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genelux and Candel is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Genelux Common and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Genelux Common 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 Genelux Common 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 Genelux Common i.e., Genelux Common and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Genelux Common and Candel Therapeutics
Given the investment horizon of 90 days Genelux Common is expected to under-perform the Candel Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Genelux Common is 1.13 times less risky than Candel Therapeutics. The stock trades about -0.04 of its potential returns per unit of risk. The Candel Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Candel Therapeutics on September 12, 2024 and sell it today you would lose (4.00) from holding Candel Therapeutics or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genelux Common vs. Candel Therapeutics
Performance |
| Timeline |
| Genelux Common |
| Candel Therapeutics |
Genelux Common and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genelux Common and Candel Therapeutics
The main advantage of trading using opposite Genelux Common and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genelux Common 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.| Genelux Common vs. Equillium | Genelux Common vs. DiaMedica Therapeutics | Genelux Common vs. Valneva SE ADR | Genelux Common vs. Vivani Medical |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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