Correlation Between CytomX Therapeutics and Metacrine
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Metacrine 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 Metacrine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Metacrine, you can compare the effects of market volatilities on CytomX Therapeutics and Metacrine 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 Metacrine. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Metacrine.
Diversification Opportunities for CytomX Therapeutics and Metacrine
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CytomX and Metacrine is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Metacrine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metacrine 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 Metacrine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metacrine has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Metacrine go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Metacrine
If you would invest 101.00 in CytomX Therapeutics on August 29, 2024 and sell it today you would earn a total of 1.00 from holding CytomX Therapeutics or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
CytomX Therapeutics vs. Metacrine
Performance |
| Timeline |
| CytomX Therapeutics |
| Metacrine |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CytomX Therapeutics and Metacrine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Metacrine
The main advantage of trading using opposite CytomX Therapeutics and Metacrine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Metacrine 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 Metacrine will offset losses from the drop in Metacrine's long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Metacrine vs. Protara Therapeutics | Metacrine vs. CytomX Therapeutics | Metacrine vs. Assembly Biosciences | Metacrine vs. Instil Bio |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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