Correlation Between Intel and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Candel Therapeutics, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Candel Therapeutics.
Diversification Opportunities for Intel and Candel Therapeutics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Candel is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Intel 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 Intel 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 Intel i.e., Intel and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Intel and Candel Therapeutics
Given the investment horizon of 90 days Intel is expected to generate 0.54 times more return on investment than Candel Therapeutics. However, Intel is 1.85 times less risky than Candel Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 2,230 in Intel on August 31, 2024 and sell it today you would earn a total of 175.00 from holding Intel or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Candel Therapeutics
Performance |
| Timeline |
| Intel |
| Candel Therapeutics |
Intel and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Candel Therapeutics
The main advantage of trading using opposite Intel and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.The idea behind Intel and Candel Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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