Correlation Between CytomX Therapeutics and Champions Oncology
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Champions Oncology 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 Champions Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Champions Oncology, you can compare the effects of market volatilities on CytomX Therapeutics and Champions Oncology 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 Champions Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Champions Oncology.
Diversification Opportunities for CytomX Therapeutics and Champions Oncology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CytomX and Champions is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Champions Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champions Oncology 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 Champions Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champions Oncology has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Champions Oncology go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Champions Oncology
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 3.35 times less return on investment than Champions Oncology. In addition to that, CytomX Therapeutics is 1.18 times more volatile than Champions Oncology. It trades about 0.03 of its total potential returns per unit of risk. Champions Oncology is currently generating about 0.12 per unit of volatility. If you would invest 398.00 in Champions Oncology on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Champions Oncology or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Champions Oncology
Performance |
| Timeline |
| CytomX Therapeutics |
| Champions Oncology |
CytomX Therapeutics and Champions Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Champions Oncology
The main advantage of trading using opposite CytomX Therapeutics and Champions Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Champions Oncology 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 Champions Oncology will offset losses from the drop in Champions Oncology's long position.| CytomX Therapeutics vs. Eliem Therapeutics | CytomX Therapeutics vs. Scpharmaceuticals | CytomX Therapeutics vs. Milestone Pharmaceuticals | CytomX Therapeutics vs. Seres Therapeutics |
| Champions Oncology vs. Fonar | Champions Oncology vs. Burning Rock Biotech | Champions Oncology vs. Sera Prognostics | Champions Oncology vs. Exagen Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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