Correlation Between CytomX Therapeutics and Inovio Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Inovio 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 Inovio 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 Inovio Pharmaceuticals, you can compare the effects of market volatilities on CytomX Therapeutics and Inovio 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 Inovio Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Inovio Pharmaceuticals.
Diversification Opportunities for CytomX Therapeutics and Inovio Pharmaceuticals
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CytomX and Inovio is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Inovio Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inovio 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 Inovio Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inovio Pharmaceuticals has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Inovio Pharmaceuticals go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Inovio Pharmaceuticals
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 2.71 times more return on investment than Inovio Pharmaceuticals. However, CytomX Therapeutics is 2.71 times more volatile than Inovio Pharmaceuticals. It trades about 0.04 of its potential returns per unit of risk. Inovio Pharmaceuticals is currently generating about 0.02 per unit of risk. If you would invest 139.00 in CytomX Therapeutics on September 4, 2024 and sell it today you would lose (16.00) from holding CytomX Therapeutics or give up 11.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Inovio Pharmaceuticals
Performance |
| Timeline |
| CytomX Therapeutics |
| Inovio Pharmaceuticals |
CytomX Therapeutics and Inovio Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Inovio Pharmaceuticals
The main advantage of trading using opposite CytomX Therapeutics and Inovio Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Inovio 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 Inovio Pharmaceuticals will offset losses from the drop in Inovio Pharmaceuticals' long position.| CytomX Therapeutics vs. Candel Therapeutics | CytomX Therapeutics vs. Cingulate Warrants | CytomX Therapeutics vs. Unicycive Therapeutics | CytomX Therapeutics vs. Cardio Diagnostics Holdings |
| Inovio Pharmaceuticals vs. Novavax | Inovio Pharmaceuticals vs. Vaxart Inc | Inovio Pharmaceuticals vs. Enveric Biosciences | Inovio Pharmaceuticals vs. Ocean Biomedical |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |