Correlation Between Candel Therapeutics and Oculis Holding

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

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

Diversification Opportunities for Candel Therapeutics and Oculis Holding

-0.7

Correlation Coefficient

Candel Therapeutics  Oculis Holding

Excellent diversification

The 3 months correlation between Candel and Oculis is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG 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 Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Oculis Holding go up and down completely randomly.

Pair Corralation between Candel Therapeutics and Oculis Holding

Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the Oculis Holding. In addition to that, Candel Therapeutics is 1.76 times more volatile than Oculis Holding AG. It trades about -0.05 of its total potential returns per unit of risk. Oculis Holding AG is currently generating about 0.09 per unit of volatility. If you would invest  1,185  in Oculis Holding AG on September 5, 2024 and sell it today you would earn a total of  352.00  from holding Oculis Holding AG or generate 29.7% 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.  Oculis Holding AG

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.

Oculis Holding AG

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oculis Holding AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting fundamental indicators, Oculis Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Candel Therapeutics and Oculis Holding

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

The idea behind Candel Therapeutics and Oculis Holding AG 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.