Correlation Between Vaxart and Candel Therapeutics

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

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

Diversification Opportunities for Vaxart and Candel Therapeutics

0.22

Correlation Coefficient

Vaxart  Candel Therapeutics

Modest diversification

The 3 months correlation between Vaxart and Candel is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Vaxart Inc and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Vaxart 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 Vaxart 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 Vaxart i.e., Vaxart and Candel Therapeutics go up and down completely randomly.

Pair Corralation between Vaxart and Candel Therapeutics

Given the investment horizon of 90 days Vaxart Inc is expected to under-perform the Candel Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Vaxart Inc is 1.08 times less risky than Candel Therapeutics. The stock trades about -0.14 of its potential returns per unit of risk. The Candel Therapeutics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  707.00  in Candel Therapeutics on December 2, 2024 and sell it today you would earn a total of  191.00  from holding Candel Therapeutics or generate 27.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vaxart Inc  vs.  Candel Therapeutics

Vaxart Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vaxart Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vaxart is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Candel Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Candel Therapeutics are ranked lower than 10 (%) 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.

Pair Trading with Vaxart and Candel Therapeutics

The main advantage of trading using opposite Vaxart and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaxart 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 Vaxart 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.