Correlation Between CytomX Therapeutics and Eledon Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Eledon 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 Eledon 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 Eledon Pharmaceuticals, you can compare the effects of market volatilities on CytomX Therapeutics and Eledon 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 Eledon Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Eledon Pharmaceuticals.
Diversification Opportunities for CytomX Therapeutics and Eledon Pharmaceuticals
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CytomX and Eledon is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Eledon Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eledon 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 Eledon Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eledon Pharmaceuticals has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Eledon Pharmaceuticals go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Eledon Pharmaceuticals
Given the investment horizon of 90 days CytomX Therapeutics is expected to under-perform the Eledon Pharmaceuticals. In addition to that, CytomX Therapeutics is 1.19 times more volatile than Eledon Pharmaceuticals. It trades about -0.14 of its total potential returns per unit of risk. Eledon Pharmaceuticals is currently generating about 0.12 per unit of volatility. If you would invest 244.00 in Eledon Pharmaceuticals on September 3, 2024 and sell it today you would earn a total of 222.00 from holding Eledon Pharmaceuticals or generate 90.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Eledon Pharmaceuticals
Performance |
| Timeline |
| CytomX Therapeutics |
| Eledon Pharmaceuticals |
CytomX Therapeutics and Eledon Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Eledon Pharmaceuticals
The main advantage of trading using opposite CytomX Therapeutics and Eledon Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Eledon 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 Eledon Pharmaceuticals will offset losses from the drop in Eledon Pharmaceuticals' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Eledon Pharmaceuticals vs. DiaMedica Therapeutics | Eledon Pharmaceuticals vs. Lyra Therapeutics | Eledon Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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