Correlation Between CytomX Therapeutics and Avenue Therapeutics
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Avenue 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 CytomX Therapeutics and Avenue Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Avenue Therapeutics, you can compare the effects of market volatilities on CytomX Therapeutics and Avenue 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 CytomX Therapeutics with a short position of Avenue Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Avenue Therapeutics.
Diversification Opportunities for CytomX Therapeutics and Avenue Therapeutics
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CytomX and Avenue is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Avenue Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avenue Therapeutics 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 Avenue Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avenue Therapeutics has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Avenue Therapeutics go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Avenue Therapeutics
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 0.75 times more return on investment than Avenue Therapeutics. However, CytomX Therapeutics is 1.33 times less risky than Avenue Therapeutics. It trades about -0.21 of its potential returns per unit of risk. Avenue Therapeutics is currently generating about -0.24 per unit of risk. If you would invest 106.00 in CytomX Therapeutics on November 3, 2024 and sell it today you would lose (21.00) from holding CytomX Therapeutics or give up 19.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Avenue Therapeutics
Performance |
| Timeline |
| CytomX Therapeutics |
| Avenue Therapeutics |
CytomX Therapeutics and Avenue Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Avenue Therapeutics
The main advantage of trading using opposite CytomX Therapeutics and Avenue Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Avenue 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 Avenue Therapeutics will offset losses from the drop in Avenue Therapeutics' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Avenue Therapeutics vs. Hoth Therapeutics | Avenue Therapeutics vs. Revelation Biosciences | Avenue Therapeutics vs. Virax Biolabs Group | Avenue Therapeutics vs. Palisade Bio |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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