Correlation Between CytomX Therapeutics and Athira Pharma
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Athira Pharma 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 Athira Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Athira Pharma, you can compare the effects of market volatilities on CytomX Therapeutics and Athira Pharma 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 Athira Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Athira Pharma.
Diversification Opportunities for CytomX Therapeutics and Athira Pharma
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CytomX and Athira is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Athira Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athira Pharma 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 Athira Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athira Pharma has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Athira Pharma go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Athira Pharma
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 1.26 times more return on investment than Athira Pharma. However, CytomX Therapeutics is 1.26 times more volatile than Athira Pharma. It trades about -0.16 of its potential returns per unit of risk. Athira Pharma is currently generating about -0.28 per unit of risk. If you would invest 87.00 in CytomX Therapeutics on November 27, 2024 and sell it today you would lose (13.00) from holding CytomX Therapeutics or give up 14.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Athira Pharma
Performance |
| Timeline |
| CytomX Therapeutics |
| Athira Pharma |
CytomX Therapeutics and Athira Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Athira Pharma
The main advantage of trading using opposite CytomX Therapeutics and Athira Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Athira Pharma 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 Athira Pharma will offset losses from the drop in Athira Pharma's long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Athira Pharma vs. CytomX Therapeutics | Athira Pharma vs. Spero Therapeutics | Athira Pharma vs. Instil Bio | Athira Pharma vs. NextCure |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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