Correlation Between OKYO Pharma and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both OKYO Pharma 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 OKYO Pharma and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OKYO Pharma Ltd and Candel Therapeutics, you can compare the effects of market volatilities on OKYO Pharma 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 OKYO Pharma with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of OKYO Pharma and Candel Therapeutics.
Diversification Opportunities for OKYO Pharma and Candel Therapeutics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OKYO and Candel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding OKYO Pharma Ltd and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and OKYO Pharma 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 OKYO Pharma Ltd 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 OKYO Pharma i.e., OKYO Pharma and Candel Therapeutics go up and down completely randomly.
Pair Corralation between OKYO Pharma and Candel Therapeutics
Given the investment horizon of 90 days OKYO Pharma Ltd is expected to generate 1.31 times more return on investment than Candel Therapeutics. However, OKYO Pharma is 1.31 times more volatile than Candel Therapeutics. It trades about -0.01 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 143.00 in OKYO Pharma Ltd on September 1, 2024 and sell it today you would lose (41.00) from holding OKYO Pharma Ltd or give up 28.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OKYO Pharma Ltd vs. Candel Therapeutics
Performance |
| Timeline |
| OKYO Pharma |
| Candel Therapeutics |
OKYO Pharma and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OKYO Pharma and Candel Therapeutics
The main advantage of trading using opposite OKYO Pharma and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OKYO Pharma 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.| OKYO Pharma vs. Candel Therapeutics | OKYO Pharma vs. Anebulo Pharmaceuticals | OKYO Pharma vs. Cingulate Warrants | OKYO Pharma vs. Unicycive 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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