Correlation Between CytomX Therapeutics and Sensei Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Sensei Biotherapeutics 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 Sensei Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Sensei Biotherapeutics, you can compare the effects of market volatilities on CytomX Therapeutics and Sensei Biotherapeutics 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 Sensei Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Sensei Biotherapeutics.
Diversification Opportunities for CytomX Therapeutics and Sensei Biotherapeutics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between CytomX and Sensei is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Sensei Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensei Biotherapeutics 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 Sensei Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensei Biotherapeutics has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Sensei Biotherapeutics go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Sensei Biotherapeutics
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 1.49 times more return on investment than Sensei Biotherapeutics. However, CytomX Therapeutics is 1.49 times more volatile than Sensei Biotherapeutics. It trades about 0.01 of its potential returns per unit of risk. Sensei Biotherapeutics is currently generating about 0.0 per unit of risk. If you would invest 265.00 in CytomX Therapeutics on October 25, 2024 and sell it today you would lose (178.22) from holding CytomX Therapeutics or give up 67.25% 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. Sensei Biotherapeutics
Performance |
| Timeline |
| CytomX Therapeutics |
| Sensei Biotherapeutics |
CytomX Therapeutics and Sensei Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Sensei Biotherapeutics
The main advantage of trading using opposite CytomX Therapeutics and Sensei Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Sensei Biotherapeutics 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 Sensei Biotherapeutics will offset losses from the drop in Sensei Biotherapeutics' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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