Correlation Between CytomX Therapeutics and Ocular Therapeutix
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Ocular Therapeutix 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 Ocular Therapeutix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Ocular Therapeutix, you can compare the effects of market volatilities on CytomX Therapeutics and Ocular Therapeutix 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 Ocular Therapeutix. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Ocular Therapeutix.
Diversification Opportunities for CytomX Therapeutics and Ocular Therapeutix
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CytomX and Ocular is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Ocular Therapeutix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocular Therapeutix 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 Ocular Therapeutix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocular Therapeutix has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Ocular Therapeutix go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Ocular Therapeutix
Given the investment horizon of 90 days CytomX Therapeutics is expected to under-perform the Ocular Therapeutix. In addition to that, CytomX Therapeutics is 2.22 times more volatile than Ocular Therapeutix. It trades about -0.21 of its total potential returns per unit of risk. Ocular Therapeutix is currently generating about -0.27 per unit of volatility. If you would invest 874.00 in Ocular Therapeutix on November 3, 2024 and sell it today you would lose (104.00) from holding Ocular Therapeutix or give up 11.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CytomX Therapeutics vs. Ocular Therapeutix
Performance |
| Timeline |
| CytomX Therapeutics |
| Ocular Therapeutix |
CytomX Therapeutics and Ocular Therapeutix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Ocular Therapeutix
The main advantage of trading using opposite CytomX Therapeutics and Ocular Therapeutix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Ocular Therapeutix 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 Ocular Therapeutix will offset losses from the drop in Ocular Therapeutix's long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Ocular Therapeutix vs. CytomX Therapeutics | Ocular Therapeutix vs. Assembly Biosciences | Ocular Therapeutix vs. Spero Therapeutics | Ocular Therapeutix vs. Achilles Therapeutics PLC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Correlations Find global opportunities by holding instruments from different markets |