Correlation Between CytomX Therapeutics and Evelo Biosciences
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Evelo Biosciences 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 Evelo Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Evelo Biosciences, you can compare the effects of market volatilities on CytomX Therapeutics and Evelo Biosciences 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 Evelo Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Evelo Biosciences.
Diversification Opportunities for CytomX Therapeutics and Evelo Biosciences
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CytomX and Evelo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Evelo Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evelo Biosciences 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 Evelo Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evelo Biosciences has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Evelo Biosciences go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Evelo Biosciences
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 24.57 times less return on investment than Evelo Biosciences. But when comparing it to its historical volatility, CytomX Therapeutics is 1.87 times less risky than Evelo Biosciences. It trades about 0.02 of its potential returns per unit of risk. Evelo Biosciences is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Evelo Biosciences on September 1, 2024 and sell it today you would earn a total of 628.00 from holding Evelo Biosciences or generate 322.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.33% |
| Values | Daily Returns |
CytomX Therapeutics vs. Evelo Biosciences
Performance |
| Timeline |
| CytomX Therapeutics |
| Evelo Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CytomX Therapeutics and Evelo Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Evelo Biosciences
The main advantage of trading using opposite CytomX Therapeutics and Evelo Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Evelo Biosciences 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 Evelo Biosciences will offset losses from the drop in Evelo Biosciences' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Evelo Biosciences vs. Aileron Therapeutics | Evelo Biosciences vs. ABVC Biopharma | Evelo Biosciences vs. Surrozen | Evelo Biosciences vs. Processa Pharmaceuticals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |