Correlation Between CytomX Therapeutics and Scisparc
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Scisparc 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 Scisparc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Scisparc, you can compare the effects of market volatilities on CytomX Therapeutics and Scisparc 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 Scisparc. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Scisparc.
Diversification Opportunities for CytomX Therapeutics and Scisparc
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CytomX and Scisparc is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc 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 Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Scisparc go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Scisparc
Given the investment horizon of 90 days CytomX Therapeutics is expected to under-perform the Scisparc. But the stock apears to be less risky and, when comparing its historical volatility, CytomX Therapeutics is 1.6 times less risky than Scisparc. The stock trades about -0.04 of its potential returns per unit of risk. The Scisparc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Scisparc on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Scisparc or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. Scisparc
Performance |
| Timeline |
| CytomX Therapeutics |
| Scisparc |
CytomX Therapeutics and Scisparc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Scisparc
The main advantage of trading using opposite CytomX Therapeutics and Scisparc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Scisparc 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 Scisparc will offset losses from the drop in Scisparc's long position.| CytomX Therapeutics vs. Eliem Therapeutics | CytomX Therapeutics vs. HCW Biologics | CytomX Therapeutics vs. Scpharmaceuticals | CytomX Therapeutics vs. Milestone Pharmaceuticals |
| Scisparc vs. Virax Biolabs Group | Scisparc vs. ZyVersa Therapeutics | Scisparc vs. Unicycive Therapeutics | Scisparc vs. Quoin Pharmaceuticals Ltd |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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