Correlation Between Lixte Biotechnology and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology 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 Lixte Biotechnology and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lixte Biotechnology Holdings and Candel Therapeutics, you can compare the effects of market volatilities on Lixte Biotechnology 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 Lixte Biotechnology with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and Candel Therapeutics.
Diversification Opportunities for Lixte Biotechnology and Candel Therapeutics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lixte and Candel is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Lixte Biotechnology 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 Lixte Biotechnology Holdings 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 Lixte Biotechnology i.e., Lixte Biotechnology and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and Candel Therapeutics
Assuming the 90 days horizon Lixte Biotechnology Holdings is expected to generate 2.81 times more return on investment than Candel Therapeutics. However, Lixte Biotechnology is 2.81 times more volatile than Candel Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 2.60 in Lixte Biotechnology Holdings on September 4, 2024 and sell it today you would lose (0.54) from holding Lixte Biotechnology Holdings or give up 20.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lixte Biotechnology Holdings vs. Candel Therapeutics
Performance |
| Timeline |
| Lixte Biotechnology |
| Candel Therapeutics |
Lixte Biotechnology and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixte Biotechnology and Candel Therapeutics
The main advantage of trading using opposite Lixte Biotechnology and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology 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.| Lixte Biotechnology vs. Candel Therapeutics | Lixte Biotechnology vs. Cingulate Warrants | Lixte Biotechnology vs. Unicycive Therapeutics | Lixte Biotechnology 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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