Correlation Between Vericel Corp and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Vericel Corp 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 Vericel Corp and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vericel Corp Ord and Candel Therapeutics, you can compare the effects of market volatilities on Vericel Corp 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 Vericel Corp with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and Candel Therapeutics.
Diversification Opportunities for Vericel Corp and Candel Therapeutics
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vericel and Candel is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Vericel Corp 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 Vericel Corp Ord 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 Vericel Corp i.e., Vericel Corp and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Vericel Corp and Candel Therapeutics
Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 0.5 times more return on investment than Candel Therapeutics. However, Vericel Corp Ord is 2.0 times less risky than Candel Therapeutics. It trades about 0.4 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 4,437 in Vericel Corp Ord on September 5, 2024 and sell it today you would earn a total of 1,387 from holding Vericel Corp Ord or generate 31.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vericel Corp Ord vs. Candel Therapeutics
Performance |
| Timeline |
| Vericel Corp Ord |
| Candel Therapeutics |
Vericel Corp and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and Candel Therapeutics
The main advantage of trading using opposite Vericel Corp and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp 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.| Vericel Corp vs. Candel Therapeutics | Vericel Corp vs. Cingulate Warrants | Vericel Corp vs. Unicycive Therapeutics | Vericel Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |