Correlation Between CytomX Therapeutics and Century Therapeutics
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Century Therapeutics 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 Century Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Century Therapeutics, you can compare the effects of market volatilities on CytomX Therapeutics and Century Therapeutics 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 Century Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Century Therapeutics.
Diversification Opportunities for CytomX Therapeutics and Century Therapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CytomX and Century is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Century Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Therapeutics 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 Century Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Therapeutics has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Century Therapeutics go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Century Therapeutics
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 2.12 times more return on investment than Century Therapeutics. However, CytomX Therapeutics is 2.12 times more volatile than Century Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Century Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 171.00 in CytomX Therapeutics on August 25, 2024 and sell it today you would lose (82.00) from holding CytomX Therapeutics or give up 47.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CytomX Therapeutics vs. Century Therapeutics
Performance |
| Timeline |
| CytomX Therapeutics |
| Century Therapeutics |
CytomX Therapeutics and Century Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Century Therapeutics
The main advantage of trading using opposite CytomX Therapeutics and Century Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Century Therapeutics 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 Century Therapeutics will offset losses from the drop in Century Therapeutics' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Century Therapeutics vs. Eliem Therapeutics | Century Therapeutics vs. HCW Biologics | Century Therapeutics vs. RenovoRx | Century Therapeutics vs. Tempest Therapeutics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |