Correlation Between Candel Therapeutics and Silo Pharma

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

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

Diversification Opportunities for Candel Therapeutics and Silo Pharma

-0.15

Correlation Coefficient

Candel Therapeutics  Silo Pharma

Good diversification

The 3 months correlation between Candel and Silo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Silo Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silo Pharma 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 Silo Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silo Pharma has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Silo Pharma go up and down completely randomly.

Pair Corralation between Candel Therapeutics and Silo Pharma

Given the investment horizon of 90 days Candel Therapeutics is expected to generate 131.92 times less return on investment than Silo Pharma. But when comparing it to its historical volatility, Candel Therapeutics is 1.37 times less risky than Silo Pharma. It trades about 0.0 of its potential returns per unit of risk. Silo Pharma is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  84.00  in Silo Pharma on December 19, 2024 and sell it today you would earn a total of  54.00  from holding Silo Pharma or generate 64.29% return on investment over 90 days.

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

Candel Therapeutics  vs.  Silo Pharma

Candel Therapeutics

Risk-Adjusted Performance

OK

Over the last 90 days Candel Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Candel Therapeutics is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Silo Pharma

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Silo Pharma are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal essential indicators, Silo Pharma displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Candel Therapeutics and Silo Pharma

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

The idea behind Candel Therapeutics and Silo Pharma 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..