Correlation Between CytomX Therapeutics and Quoin Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Quoin Pharmaceuticals 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 Quoin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Quoin Pharmaceuticals Ltd, you can compare the effects of market volatilities on CytomX Therapeutics and Quoin Pharmaceuticals 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 Quoin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Quoin Pharmaceuticals.
Diversification Opportunities for CytomX Therapeutics and Quoin Pharmaceuticals
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between CytomX and Quoin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals 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 Quoin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoin Pharmaceuticals has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Quoin Pharmaceuticals go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Quoin Pharmaceuticals
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 0.94 times more return on investment than Quoin Pharmaceuticals. However, CytomX Therapeutics is 1.07 times less risky than Quoin Pharmaceuticals. It trades about -0.21 of its potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about -0.37 per unit of risk. If you would invest 108.00 in CytomX Therapeutics on August 25, 2024 and sell it today you would lose (19.00) from holding CytomX Therapeutics or give up 17.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Quoin Pharmaceuticals Ltd
Performance |
| Timeline |
| CytomX Therapeutics |
| Quoin Pharmaceuticals |
CytomX Therapeutics and Quoin Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Quoin Pharmaceuticals
The main advantage of trading using opposite CytomX Therapeutics and Quoin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Quoin Pharmaceuticals 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 Quoin Pharmaceuticals will offset losses from the drop in Quoin Pharmaceuticals' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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