Correlation Between CytomX Therapeutics and Kaleido Biosciences
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Kaleido 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 Kaleido 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 Kaleido Biosciences, you can compare the effects of market volatilities on CytomX Therapeutics and Kaleido 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 Kaleido Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Kaleido Biosciences.
Diversification Opportunities for CytomX Therapeutics and Kaleido Biosciences
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CytomX and Kaleido is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Kaleido Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaleido 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 Kaleido Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaleido Biosciences has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Kaleido Biosciences go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Kaleido Biosciences
If you would invest 1.00 in Kaleido Biosciences on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Kaleido Biosciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Kaleido Biosciences
Performance |
| Timeline |
| CytomX Therapeutics |
| Kaleido Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CytomX Therapeutics and Kaleido Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Kaleido Biosciences
The main advantage of trading using opposite CytomX Therapeutics and Kaleido Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Kaleido 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 Kaleido Biosciences will offset losses from the drop in Kaleido Biosciences' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Kaleido Biosciences vs. Inhibikase Therapeutics | Kaleido Biosciences vs. Tempest Therapeutics | Kaleido Biosciences vs. CytomX Therapeutics | Kaleido Biosciences vs. Assembly Biosciences |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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