Correlation Between Candel Therapeutics and Ampio Pharm

Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Ampio Pharm 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 Ampio Pharm into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Candel Therapeutics and Ampio Pharm, you can compare the effects of market volatilities on Candel Therapeutics and Ampio Pharm 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 Ampio Pharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Ampio Pharm.

Diversification Opportunities for Candel Therapeutics and Ampio Pharm

0.0

Correlation Coefficient

Candel Therapeutics  Ampio Pharm

Pay attention - limited upside

The 3 months correlation between Candel and Ampio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Ampio Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampio Pharm 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 Ampio Pharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampio Pharm has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Ampio Pharm go up and down completely randomly.

Pair Corralation between Candel Therapeutics and Ampio Pharm

If you would invest  24.00  in Ampio Pharm on October 27, 2024 and sell it today you would earn a total of  0.00  from holding Ampio Pharm or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Candel Therapeutics  vs.  Ampio Pharm

Candel Therapeutics

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Candel Therapeutics are ranked lower than 6 (%) 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.

Ampio Pharm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ampio Pharm has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ampio Pharm is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Candel Therapeutics and Ampio Pharm

The main advantage of trading using opposite Candel Therapeutics and Ampio Pharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Ampio Pharm 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 Ampio Pharm will offset losses from the drop in Ampio Pharm's long position.

The idea behind Candel Therapeutics and Ampio Pharm 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.

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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.