Correlation Between Silence Therapeutics and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Silence Therapeutics 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 Silence Therapeutics and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silence Therapeutics PLC and Candel Therapeutics, you can compare the effects of market volatilities on Silence Therapeutics 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 Silence Therapeutics with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silence Therapeutics and Candel Therapeutics.
Diversification Opportunities for Silence Therapeutics and Candel Therapeutics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silence and Candel is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Silence Therapeutics PLC and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Silence Therapeutics 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 Silence Therapeutics PLC 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 Silence Therapeutics i.e., Silence Therapeutics and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Silence Therapeutics and Candel Therapeutics
Considering the 90-day investment horizon Silence Therapeutics PLC is expected to under-perform the Candel Therapeutics. In addition to that, Silence Therapeutics is 1.46 times more volatile than Candel Therapeutics. It trades about -0.36 of its total potential returns per unit of risk. Candel Therapeutics is currently generating about -0.06 per unit of volatility. If you would invest 519.00 in Candel Therapeutics on September 4, 2024 and sell it today you would lose (62.00) from holding Candel Therapeutics or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silence Therapeutics PLC vs. Candel Therapeutics
Performance |
| Timeline |
| Silence Therapeutics PLC |
| Candel Therapeutics |
Silence Therapeutics and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silence Therapeutics and Candel Therapeutics
The main advantage of trading using opposite Silence Therapeutics and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silence Therapeutics 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.| Silence Therapeutics vs. Candel Therapeutics | Silence Therapeutics vs. Cingulate Warrants | Silence Therapeutics vs. Unicycive Therapeutics | Silence Therapeutics 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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