Correlation Between Corbus Pharmaceuticals and Candel Therapeutics

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

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

Diversification Opportunities for Corbus Pharmaceuticals and Candel Therapeutics

0.53

Correlation Coefficient

Corbus Pharmaceuticals  Candel Therapeutics

Very weak diversification

The 3 months correlation between Corbus and Candel is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Corbus Pharmaceuticals Holding and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Corbus Pharmaceuticals 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 Corbus Pharmaceuticals Holding 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 Corbus Pharmaceuticals i.e., Corbus Pharmaceuticals and Candel Therapeutics go up and down completely randomly.

Pair Corralation between Corbus Pharmaceuticals and Candel Therapeutics

Given the investment horizon of 90 days Corbus Pharmaceuticals Holding is expected to under-perform the Candel Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Corbus Pharmaceuticals Holding is 5.17 times less risky than Candel Therapeutics. The stock trades about -0.17 of its potential returns per unit of risk. The Candel Therapeutics is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  447.00  in Candel Therapeutics on September 13, 2024 and sell it today you would earn a total of  328.00  from holding Candel Therapeutics or generate 73.38% return on investment over 90 days.

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

Corbus Pharmaceuticals Holding  vs.  Candel Therapeutics

Corbus Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Corbus Pharmaceuticals Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Candel Therapeutics

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Candel Therapeutics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Candel Therapeutics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corbus Pharmaceuticals and Candel Therapeutics

The main advantage of trading using opposite Corbus Pharmaceuticals and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corbus Pharmaceuticals 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.

The idea behind Corbus Pharmaceuticals Holding and Candel Therapeutics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.