Correlation Between Sellas Life and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Sellas Life 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 Sellas Life and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Candel Therapeutics, you can compare the effects of market volatilities on Sellas Life 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 Sellas Life with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Candel Therapeutics.
Diversification Opportunities for Sellas Life and Candel Therapeutics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sellas and Candel is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Sellas Life 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 Sellas Life Sciences 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 Sellas Life i.e., Sellas Life and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Sellas Life and Candel Therapeutics
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 0.52 times more return on investment than Candel Therapeutics. However, Sellas Life Sciences is 1.94 times less risky than Candel Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 117.00 in Sellas Life Sciences on September 4, 2024 and sell it today you would lose (1.00) from holding Sellas Life Sciences or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. Candel Therapeutics
Performance |
| Timeline |
| Sellas Life Sciences |
| Candel Therapeutics |
Sellas Life and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Candel Therapeutics
The main advantage of trading using opposite Sellas Life and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life 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.| Sellas Life vs. Candel Therapeutics | Sellas Life vs. Cingulate Warrants | Sellas Life vs. Unicycive Therapeutics | Sellas Life 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |