Correlation Between Candel Therapeutics and Mink Therapeutics

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

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

Diversification Opportunities for Candel Therapeutics and Mink Therapeutics

0.0

Correlation Coefficient

Candel Therapeutics  Mink Therapeutics

Pay attention - limited upside

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

Pair Corralation between Candel Therapeutics and Mink Therapeutics

Given the investment horizon of 90 days Candel Therapeutics is expected to generate 4.84 times more return on investment than Mink Therapeutics. However, Candel Therapeutics is 4.84 times more volatile than Mink Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Mink Therapeutics is currently generating about -0.12 per unit of risk. If you would invest  703.00  in Candel Therapeutics on September 17, 2024 and sell it today you would lose (47.00) from holding Candel Therapeutics or give up 6.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Candel Therapeutics  vs.  Mink Therapeutics

Candel Therapeutics

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Candel Therapeutics are ranked lower than 2 (%) 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.

Mink Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mink Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Candel Therapeutics and Mink Therapeutics

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

The idea behind Candel Therapeutics and Mink Therapeutics 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.