Correlation Between Longeveron LLC and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Longeveron LLC 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 Longeveron LLC and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Longeveron LLC and Candel Therapeutics, you can compare the effects of market volatilities on Longeveron LLC 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 Longeveron LLC with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longeveron LLC and Candel Therapeutics.
Diversification Opportunities for Longeveron LLC and Candel Therapeutics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Longeveron and Candel is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Longeveron LLC and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Longeveron LLC 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 Longeveron LLC 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 Longeveron LLC i.e., Longeveron LLC and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Longeveron LLC and Candel Therapeutics
Given the investment horizon of 90 days Longeveron LLC is expected to under-perform the Candel Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Longeveron LLC is 1.51 times less risky than Candel Therapeutics. The stock trades about -0.03 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 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longeveron LLC vs. Candel Therapeutics
Performance |
| Timeline |
| Longeveron LLC |
| Candel Therapeutics |
Longeveron LLC and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longeveron LLC and Candel Therapeutics
The main advantage of trading using opposite Longeveron LLC and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longeveron LLC 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.| Longeveron LLC vs. Candel Therapeutics | Longeveron LLC vs. Cingulate Warrants | Longeveron LLC vs. Unicycive Therapeutics | Longeveron LLC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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