Correlation Between Candel Therapeutics and GH Research

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

By analyzing existing cross correlation between Candel Therapeutics and GH Research PLC, you can compare the effects of market volatilities on Candel Therapeutics and GH Research 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 GH Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and GH Research.

Diversification Opportunities for Candel Therapeutics and GH Research

-0.62

Correlation Coefficient

Candel Therapeutics  GH Research

Excellent diversification

The 3 months correlation between Candel and GHRS is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and GH Research PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GH Research PLC 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 GH Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GH Research PLC has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and GH Research go up and down completely randomly.

Pair Corralation between Candel Therapeutics and GH Research

Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the GH Research. In addition to that, Candel Therapeutics is 1.05 times more volatile than GH Research PLC. It trades about -0.1 of its total potential returns per unit of risk. GH Research PLC is currently generating about 0.0 per unit of volatility. If you would invest  847.00  in GH Research PLC on September 5, 2024 and sell it today you would lose (47.00) from holding GH Research PLC or give up 5.55% of portfolio value over 90 days.

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

Candel Therapeutics  vs.  GH Research PLC

Candel Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

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

GH Research PLC

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Candel Therapeutics and GH Research

The main advantage of trading using opposite Candel Therapeutics and GH Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, GH Research 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 GH Research will offset losses from the drop in GH Research's long position.

The idea behind Candel Therapeutics and GH Research PLC 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.