Correlation Between Candel Therapeutics and TravelCenters

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

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

Diversification Opportunities for Candel Therapeutics and TravelCenters

-0.48

Correlation Coefficient

Candel Therapeutics  TravelCenters

Very good diversification

The 3 months correlation between Candel and TravelCenters is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and TravelCenters Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TravelCenters Of America 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 TravelCenters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TravelCenters Of America has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and TravelCenters go up and down completely randomly.

Pair Corralation between Candel Therapeutics and TravelCenters

If you would invest  776.00  in Candel Therapeutics on September 18, 2024 and sell it today you would lose (160.00) from holding Candel Therapeutics or give up 20.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Candel Therapeutics  vs.  TravelCenters Of America

Candel Therapeutics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Candel Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Candel Therapeutics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

TravelCenters Of America

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Candel Therapeutics and TravelCenters

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

The idea behind Candel Therapeutics and TravelCenters Of America 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..