Correlation Between Shattuck Labs and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs 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 Shattuck Labs and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shattuck Labs and Candel Therapeutics, you can compare the effects of market volatilities on Shattuck Labs 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 Shattuck Labs with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and Candel Therapeutics.
Diversification Opportunities for Shattuck Labs and Candel Therapeutics
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shattuck and Candel is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Shattuck Labs 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 Shattuck Labs 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 Shattuck Labs i.e., Shattuck Labs and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Shattuck Labs and Candel Therapeutics
Given the investment horizon of 90 days Shattuck Labs is expected to generate 0.91 times more return on investment than Candel Therapeutics. However, Shattuck Labs is 1.1 times less risky than Candel Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.08 per unit of risk. If you would invest 120.00 in Shattuck Labs on September 6, 2024 and sell it today you would earn a total of 5.00 from holding Shattuck Labs or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shattuck Labs vs. Candel Therapeutics
Performance |
| Timeline |
| Shattuck Labs |
| Candel Therapeutics |
Shattuck Labs and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and Candel Therapeutics
The main advantage of trading using opposite Shattuck Labs and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs 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.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Eliem Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |