Correlation Between PepGen and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both PepGen 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 PepGen and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Candel Therapeutics, you can compare the effects of market volatilities on PepGen 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 PepGen with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Candel Therapeutics.
Diversification Opportunities for PepGen and Candel Therapeutics
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between PepGen and Candel is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and PepGen 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 PepGen 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 PepGen i.e., PepGen and Candel Therapeutics go up and down completely randomly.
Pair Corralation between PepGen and Candel Therapeutics
Given the investment horizon of 90 days PepGen is expected to under-perform the Candel Therapeutics. In addition to that, PepGen is 2.32 times more volatile than Candel Therapeutics. It trades about -0.04 of its total potential returns per unit of risk. Candel Therapeutics is currently generating about 0.0 per unit of volatility. If you would invest 795.00 in Candel Therapeutics on December 28, 2024 and sell it today you would lose (100.00) from holding Candel Therapeutics or give up 12.58% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PepGen vs. Candel Therapeutics
Performance |
Timeline |
PepGen |
Candel Therapeutics |
PepGen and Candel Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PepGen and Candel Therapeutics
The main advantage of trading using opposite PepGen and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen 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.PepGen vs. Pmv Pharmaceuticals | PepGen vs. MediciNova | PepGen vs. Pharvaris BV | PepGen vs. Molecular Partners AG |
Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |