Correlation Between CytomX Therapeutics and ProQR Therapeutics
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and ProQR 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 ProQR 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 ProQR Therapeutics BV, you can compare the effects of market volatilities on CytomX Therapeutics and ProQR 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 ProQR Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and ProQR Therapeutics.
Diversification Opportunities for CytomX Therapeutics and ProQR Therapeutics
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CytomX and ProQR is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and ProQR Therapeutics BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProQR 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 ProQR Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProQR Therapeutics has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and ProQR Therapeutics go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and ProQR Therapeutics
Given the investment horizon of 90 days CytomX Therapeutics is expected to under-perform the ProQR Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, CytomX Therapeutics is 4.33 times less risky than ProQR Therapeutics. The stock trades about -0.06 of its potential returns per unit of risk. The ProQR Therapeutics BV is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 198.00 in ProQR Therapeutics BV on August 28, 2024 and sell it today you would earn a total of 156.00 from holding ProQR Therapeutics BV or generate 78.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. ProQR Therapeutics BV
Performance |
| Timeline |
| CytomX Therapeutics |
| ProQR Therapeutics |
CytomX Therapeutics and ProQR Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and ProQR Therapeutics
The main advantage of trading using opposite CytomX Therapeutics and ProQR Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, ProQR 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 ProQR Therapeutics will offset losses from the drop in ProQR Therapeutics' long position.| CytomX Therapeutics vs. Eliem Therapeutics | CytomX Therapeutics vs. HCW Biologics | CytomX Therapeutics vs. Scpharmaceuticals | CytomX Therapeutics vs. Milestone Pharmaceuticals |
| ProQR Therapeutics vs. Eliem Therapeutics | ProQR Therapeutics vs. HCW Biologics | ProQR Therapeutics vs. Scpharmaceuticals | ProQR Therapeutics vs. Milestone Pharmaceuticals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |