Correlation Between CytomX Therapeutics and Satsuma Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Satsuma 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 Satsuma 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 Satsuma Pharmaceuticals, you can compare the effects of market volatilities on CytomX Therapeutics and Satsuma 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 Satsuma Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Satsuma Pharmaceuticals.
Diversification Opportunities for CytomX Therapeutics and Satsuma Pharmaceuticals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between CytomX and Satsuma is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Satsuma Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satsuma 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 Satsuma Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satsuma Pharmaceuticals has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Satsuma Pharmaceuticals go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Satsuma Pharmaceuticals
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 4.59 times less return on investment than Satsuma Pharmaceuticals. In addition to that, CytomX Therapeutics is 1.36 times more volatile than Satsuma Pharmaceuticals. It trades about 0.01 of its total potential returns per unit of risk. Satsuma Pharmaceuticals is currently generating about 0.07 per unit of volatility. If you would invest 86.00 in Satsuma Pharmaceuticals on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Satsuma Pharmaceuticals or generate 27.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.4% |
| Values | Daily Returns |
CytomX Therapeutics vs. Satsuma Pharmaceuticals
Performance |
| Timeline |
| CytomX Therapeutics |
| Satsuma Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CytomX Therapeutics and Satsuma Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and Satsuma Pharmaceuticals
The main advantage of trading using opposite CytomX Therapeutics and Satsuma Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Satsuma 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 Satsuma Pharmaceuticals will offset losses from the drop in Satsuma Pharmaceuticals' long position.| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
| Satsuma Pharmaceuticals vs. Erasca Inc | Satsuma Pharmaceuticals vs. Forte Biosciences | Satsuma Pharmaceuticals vs. SAB Biotherapeutics | Satsuma Pharmaceuticals vs. Senti 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |