Correlation Between Biodexa Pharmaceticals and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Biodexa Pharmaceticals and CytomX 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 Biodexa Pharmaceticals and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biodexa Pharmaceticals and CytomX Therapeutics, you can compare the effects of market volatilities on Biodexa Pharmaceticals and CytomX 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 Biodexa Pharmaceticals with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biodexa Pharmaceticals and CytomX Therapeutics.
Diversification Opportunities for Biodexa Pharmaceticals and CytomX Therapeutics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biodexa and CytomX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Biodexa Pharmaceticals and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Biodexa Pharmaceticals 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 Biodexa Pharmaceticals are associated (or correlated) with CytomX Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CytomX Therapeutics has no effect on the direction of Biodexa Pharmaceticals i.e., Biodexa Pharmaceticals and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Biodexa Pharmaceticals and CytomX Therapeutics
Given the investment horizon of 90 days Biodexa Pharmaceticals is expected to under-perform the CytomX Therapeutics. In addition to that, Biodexa Pharmaceticals is 1.15 times more volatile than CytomX Therapeutics. It trades about -0.07 of its total potential returns per unit of risk. CytomX Therapeutics is currently generating about 0.02 per unit of volatility. If you would invest 164.00 in CytomX Therapeutics on August 27, 2024 and sell it today you would lose (75.00) from holding CytomX Therapeutics or give up 45.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biodexa Pharmaceticals vs. CytomX Therapeutics
Performance |
| Timeline |
| Biodexa Pharmaceticals |
| CytomX Therapeutics |
Biodexa Pharmaceticals and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biodexa Pharmaceticals and CytomX Therapeutics
The main advantage of trading using opposite Biodexa Pharmaceticals and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biodexa Pharmaceticals position performs unexpectedly, CytomX 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 CytomX Therapeutics will offset losses from the drop in CytomX Therapeutics' long position.| Biodexa Pharmaceticals vs. Doubledown Interactive Co | Biodexa Pharmaceticals vs. Verde Clean Fuels | Biodexa Pharmaceticals vs. China Clean Energy | Biodexa Pharmaceticals vs. Ultra Clean Holdings |
| CytomX Therapeutics vs. Eliem Therapeutics | CytomX Therapeutics vs. HCW Biologics | CytomX Therapeutics vs. Scpharmaceuticals | CytomX Therapeutics vs. Milestone Pharmaceuticals |
Check out your portfolio center.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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |