Correlation Between Pfizer and Candel Therapeutics

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

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

Diversification Opportunities for Pfizer and Candel Therapeutics

-0.02

Correlation Coefficient

Pfizer  Candel Therapeutics

Good diversification

The 3 months correlation between Pfizer and Candel is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Pfizer 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 Pfizer Inc 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 Pfizer i.e., Pfizer and Candel Therapeutics go up and down completely randomly.

Pair Corralation between Pfizer and Candel Therapeutics

Considering the 90-day investment horizon Pfizer is expected to generate 15.56 times less return on investment than Candel Therapeutics. But when comparing it to its historical volatility, Pfizer Inc is 5.53 times less risky than Candel Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Candel Therapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  917.00  in Candel Therapeutics on December 25, 2024 and sell it today you would lose (51.00) from holding Candel Therapeutics or give up 5.56% of portfolio value over 90 days.

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

Pfizer Inc  vs.  Candel Therapeutics

Pfizer Inc

Risk-Adjusted Performance

Very Weak

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

Candel Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Candel Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Candel Therapeutics may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Pfizer and Candel Therapeutics

The main advantage of trading using opposite Pfizer and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer 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.

The idea behind Pfizer Inc and Candel 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.