Correlation Between TC BioPharm and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both TC BioPharm 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 TC BioPharm and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TC BioPharm plc and Candel Therapeutics, you can compare the effects of market volatilities on TC BioPharm 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 TC BioPharm with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TC BioPharm and Candel Therapeutics.
Diversification Opportunities for TC BioPharm and Candel Therapeutics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TCBPW and Candel is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding TC BioPharm plc and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and TC BioPharm 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 TC BioPharm 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 TC BioPharm i.e., TC BioPharm and Candel Therapeutics go up and down completely randomly.
Pair Corralation between TC BioPharm and Candel Therapeutics
Assuming the 90 days horizon TC BioPharm plc is expected to generate 5.25 times more return on investment than Candel Therapeutics. However, TC BioPharm is 5.25 times more volatile than Candel Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Candel Therapeutics is currently generating about 0.05 per unit of risk. If you would invest 15.00 in TC BioPharm plc on September 5, 2024 and sell it today you would lose (13.50) from holding TC BioPharm plc or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.27% |
| Values | Daily Returns |
TC BioPharm plc vs. Candel Therapeutics
Performance |
| Timeline |
| TC BioPharm plc |
| Candel Therapeutics |
TC BioPharm and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TC BioPharm and Candel Therapeutics
The main advantage of trading using opposite TC BioPharm and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC BioPharm 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.| TC BioPharm vs. Candel Therapeutics | TC BioPharm vs. Cingulate Warrants | TC BioPharm vs. Unicycive Therapeutics | TC BioPharm 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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