Correlation Between Aardvark Therapeutics, and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aardvark Therapeutics, 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 Aardvark Therapeutics, and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aardvark Therapeutics, Common and Candel Therapeutics, you can compare the effects of market volatilities on Aardvark Therapeutics, 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 Aardvark Therapeutics, with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aardvark Therapeutics, and Candel Therapeutics.
Diversification Opportunities for Aardvark Therapeutics, and Candel Therapeutics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aardvark and Candel is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aardvark Therapeutics, Common and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Aardvark 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 Aardvark Therapeutics, Common 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 Aardvark Therapeutics, i.e., Aardvark Therapeutics, and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Aardvark Therapeutics, and Candel Therapeutics
Given the investment horizon of 90 days Aardvark Therapeutics, Common is expected to generate 1.26 times more return on investment than Candel Therapeutics. However, Aardvark Therapeutics, is 1.26 times more volatile than Candel Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Candel Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 1,044 in Aardvark Therapeutics, Common on August 16, 2025 and sell it today you would lose (52.00) from holding Aardvark Therapeutics, Common or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aardvark Therapeutics, Common vs. Candel Therapeutics
Performance |
| Timeline |
| Aardvark Therapeutics, |
| Candel Therapeutics |
Aardvark Therapeutics, and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aardvark Therapeutics, and Candel Therapeutics
The main advantage of trading using opposite Aardvark Therapeutics, and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aardvark Therapeutics, 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.| Aardvark Therapeutics, vs. Assembly Biosciences | Aardvark Therapeutics, vs. Zura Bio Limited | Aardvark Therapeutics, vs. Nautilus Biotechnology | Aardvark Therapeutics, vs. Eupraxia Pharmaceuticals Common |
| Candel Therapeutics vs. Mereo BioPharma Group | Candel Therapeutics vs. Immutep Ltd ADR | Candel Therapeutics vs. Capricor Therapeutics | Candel Therapeutics vs. ProQR Therapeutics BV |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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