Correlation Between Voyager Therapeutics and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Voyager 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 Voyager 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 Voyager Therapeutics and Candel Therapeutics, you can compare the effects of market volatilities on Voyager 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 Voyager Therapeutics with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voyager Therapeutics and Candel Therapeutics.
Diversification Opportunities for Voyager Therapeutics and Candel Therapeutics
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Voyager and Candel is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Voyager Therapeutics and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Voyager 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 Voyager Therapeutics 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 Voyager Therapeutics i.e., Voyager Therapeutics and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Voyager Therapeutics and Candel Therapeutics
Given the investment horizon of 90 days Voyager Therapeutics is expected to generate 0.94 times more return on investment than Candel Therapeutics. However, Voyager Therapeutics is 1.07 times less risky than Candel Therapeutics. It trades about -0.03 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.05 per unit of risk. If you would invest 851.00 in Voyager Therapeutics on September 12, 2024 and sell it today you would lose (232.00) from holding Voyager Therapeutics or give up 27.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Voyager Therapeutics vs. Candel Therapeutics
Performance |
| Timeline |
| Voyager Therapeutics |
| Candel Therapeutics |
Voyager Therapeutics and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voyager Therapeutics and Candel Therapeutics
The main advantage of trading using opposite Voyager Therapeutics and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voyager 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.| Voyager Therapeutics vs. Day One Biopharmaceuticals | Voyager Therapeutics vs. X4 Pharmaceuticals | Voyager Therapeutics vs. Inozyme Pharma | Voyager Therapeutics vs. Acumen Pharmaceuticals |
| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |