Correlation Between 23Andme Holding and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both 23Andme Holding 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 23Andme Holding and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 23Andme Holding Co and Candel Therapeutics, you can compare the effects of market volatilities on 23Andme Holding 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 23Andme Holding with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 23Andme Holding and Candel Therapeutics.
Diversification Opportunities for 23Andme Holding and Candel Therapeutics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 23Andme and Candel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding 23Andme Holding Co and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and 23Andme Holding 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 23Andme Holding Co 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 23Andme Holding i.e., 23Andme Holding and Candel Therapeutics go up and down completely randomly.
Pair Corralation between 23Andme Holding and Candel Therapeutics
Allowing for the 90-day total investment horizon 23Andme Holding Co is expected to under-perform the Candel Therapeutics. In addition to that, 23Andme Holding is 1.79 times more volatile than Candel Therapeutics. It trades about -0.13 of its total potential returns per unit of risk. Candel Therapeutics is currently generating about -0.03 per unit of volatility. If you would invest 887.00 in Candel Therapeutics on December 27, 2024 and sell it today you would lose (192.00) from holding Candel Therapeutics or give up 21.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
23Andme Holding Co vs. Candel Therapeutics
Performance |
Timeline |
23Andme Holding |
Candel Therapeutics |
23Andme Holding and Candel Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 23Andme Holding and Candel Therapeutics
The main advantage of trading using opposite 23Andme Holding and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 23Andme Holding 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.23Andme Holding vs. IDEXX Laboratories | 23Andme Holding vs. Twist Bioscience Corp | 23Andme Holding vs. Guardant Health | 23Andme Holding vs. Agilent Technologies |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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