Correlation Between CytomX Therapeutics and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Acumen Pharmaceuticals 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 CytomX Therapeutics and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Acumen Pharmaceuticals, you can compare the effects of market volatilities on CytomX Therapeutics and Acumen Pharmaceuticals 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 CytomX Therapeutics with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Acumen Pharmaceuticals.
Diversification Opportunities for CytomX Therapeutics and Acumen Pharmaceuticals
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CytomX and Acumen is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and CytomX 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 CytomX Therapeutics are associated (or correlated) with Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Acumen Pharmaceuticals
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 0.79 times more return on investment than Acumen Pharmaceuticals. However, CytomX Therapeutics is 1.27 times less risky than Acumen Pharmaceuticals. It trades about -0.04 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.03 per unit of risk. If you would invest 116.00 in CytomX Therapeutics on August 28, 2024 and sell it today you would lose (14.00) from holding CytomX Therapeutics or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| CytomX Therapeutics |
| Acumen Pharmaceuticals |
CytomX Therapeutics and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Acumen Pharmaceuticals
The main advantage of trading using opposite CytomX Therapeutics and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Acumen Pharmaceuticals 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.| CytomX Therapeutics vs. Eliem Therapeutics | CytomX Therapeutics vs. Scpharmaceuticals | CytomX Therapeutics vs. Milestone Pharmaceuticals | CytomX Therapeutics vs. Seres Therapeutics |
| Acumen Pharmaceuticals vs. Eliem Therapeutics | Acumen Pharmaceuticals vs. Scpharmaceuticals | Acumen Pharmaceuticals vs. Milestone Pharmaceuticals | Acumen Pharmaceuticals vs. Seres Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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