Correlation Between Candel Therapeutics and Alpine Immune

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Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Alpine Immune 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 Candel Therapeutics and Alpine Immune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Alpine Immune Sciences, you can compare the effects of market volatilities on Candel Therapeutics and Alpine Immune 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 Candel Therapeutics with a short position of Alpine Immune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Alpine Immune.

Diversification Opportunities for Candel Therapeutics and Alpine Immune

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Candel and Alpine is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Alpine Immune Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Immune Sciences and Candel 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 Candel Therapeutics are associated (or correlated) with Alpine Immune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Immune Sciences has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Alpine Immune go up and down completely randomly.

Pair Corralation between Candel Therapeutics and Alpine Immune

If you would invest  775.00  in Candel Therapeutics on October 12, 2024 and sell it today you would earn a total of  98.00  from holding Candel Therapeutics or generate 12.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy5.0%
ValuesDaily Returns

Candel Therapeutics  vs.  Alpine Immune Sciences

 Performance 
       Timeline  
Candel Therapeutics 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Candel Therapeutics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Candel Therapeutics disclosed solid returns over the last few months and may actually be approaching a breakup point.
Alpine Immune Sciences 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Alpine Immune Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Alpine Immune is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Candel Therapeutics and Alpine Immune Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Candel Therapeutics and Alpine Immune

The main advantage of trading using opposite Candel Therapeutics and Alpine Immune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Alpine Immune 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 Alpine Immune will offset losses from the drop in Alpine Immune's long position.
The idea behind Candel Therapeutics and Alpine Immune Sciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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