Correlation Between CytomX Therapeutics and Chimerix
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Chimerix 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 Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Chimerix, you can compare the effects of market volatilities on CytomX Therapeutics and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Chimerix.
Diversification Opportunities for CytomX Therapeutics and Chimerix
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CytomX and Chimerix is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Chimerix go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Chimerix
Given the investment horizon of 90 days CytomX Therapeutics is expected to under-perform the Chimerix. In addition to that, CytomX Therapeutics is 1.59 times more volatile than Chimerix. It trades about -0.14 of its total potential returns per unit of risk. Chimerix is currently generating about -0.01 per unit of volatility. If you would invest 100.00 in Chimerix on September 3, 2024 and sell it today you would lose (12.00) from holding Chimerix or give up 12.0% 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. Chimerix
Performance |
| Timeline |
| CytomX Therapeutics |
| Chimerix |
CytomX Therapeutics and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Chimerix
The main advantage of trading using opposite CytomX Therapeutics and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |