Correlation Between Candel Therapeutics and Aldeyra

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Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Aldeyra 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 Aldeyra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Aldeyra, you can compare the effects of market volatilities on Candel Therapeutics and Aldeyra 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 Aldeyra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Aldeyra.

Diversification Opportunities for Candel Therapeutics and Aldeyra

0.38
  Correlation Coefficient

Weak diversification

The 3 months correlation between Candel and Aldeyra is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Aldeyra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldeyra 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 Aldeyra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldeyra has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Aldeyra go up and down completely randomly.

Pair Corralation between Candel Therapeutics and Aldeyra

Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the Aldeyra. In addition to that, Candel Therapeutics is 1.29 times more volatile than Aldeyra. It trades about -0.06 of its total potential returns per unit of risk. Aldeyra is currently generating about -0.01 per unit of volatility. If you would invest  575.00  in Aldeyra on September 1, 2025 and sell it today you would lose (27.00) from holding Aldeyra or give up 4.7% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Candel Therapeutics  vs.  Aldeyra

 Performance 
       Timeline  
Candel Therapeutics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Candel Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Aldeyra 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Aldeyra has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Aldeyra is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Candel Therapeutics and Aldeyra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Candel Therapeutics and Aldeyra

The main advantage of trading using opposite Candel Therapeutics and Aldeyra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Aldeyra 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 Aldeyra will offset losses from the drop in Aldeyra's long position.
The idea behind Candel Therapeutics and Aldeyra 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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