Correlation Between Candel Therapeutics and Vericel Corp
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Vericel Corp 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 Vericel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Vericel Corp Ord, you can compare the effects of market volatilities on Candel Therapeutics and Vericel Corp 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 Vericel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Vericel Corp.
Diversification Opportunities for Candel Therapeutics and Vericel Corp
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Candel and Vericel is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Vericel Corp Ord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vericel Corp Ord 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 Vericel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vericel Corp Ord has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Vericel Corp go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Vericel Corp
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 2.76 times more return on investment than Vericel Corp. However, Candel Therapeutics is 2.76 times more volatile than Vericel Corp Ord. It trades about 0.07 of its potential returns per unit of risk. Vericel Corp Ord is currently generating about 0.1 per unit of risk. If you would invest 483.00 in Candel Therapeutics on September 9, 2024 and sell it today you would earn a total of 31.00 from holding Candel Therapeutics or generate 6.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Candel Therapeutics vs. Vericel Corp Ord
Performance |
Timeline |
Candel Therapeutics |
Vericel Corp Ord |
Candel Therapeutics and Vericel Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Candel Therapeutics and Vericel Corp
The main advantage of trading using opposite Candel Therapeutics and Vericel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Vericel Corp 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 Vericel Corp will offset losses from the drop in Vericel Corp's long position.Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
Vericel Corp vs. Collplant Biotechnologies | Vericel Corp vs. Keros Therapeutics | Vericel Corp vs. Merus BV | Vericel Corp vs. Century Therapeutics |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |