Correlation Between Hookipa Pharma and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Hookipa Pharma and CytomX 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 Hookipa Pharma and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hookipa Pharma and CytomX Therapeutics, you can compare the effects of market volatilities on Hookipa Pharma and CytomX 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 Hookipa Pharma with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hookipa Pharma and CytomX Therapeutics.
Diversification Opportunities for Hookipa Pharma and CytomX Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hookipa and CytomX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Hookipa Pharma 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 Hookipa Pharma are associated (or correlated) with CytomX Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CytomX Therapeutics has no effect on the direction of Hookipa Pharma i.e., Hookipa Pharma and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Hookipa Pharma and CytomX Therapeutics
Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the CytomX Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Hookipa Pharma is 1.93 times less risky than CytomX Therapeutics. The stock trades about -0.03 of its potential returns per unit of risk. The CytomX Therapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 171.00 in CytomX Therapeutics on August 24, 2024 and sell it today you would lose (82.00) from holding CytomX Therapeutics or give up 47.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hookipa Pharma vs. CytomX Therapeutics
Performance |
| Timeline |
| Hookipa Pharma |
| CytomX Therapeutics |
Hookipa Pharma and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hookipa Pharma and CytomX Therapeutics
The main advantage of trading using opposite Hookipa Pharma and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma position performs unexpectedly, CytomX 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 CytomX Therapeutics will offset losses from the drop in CytomX Therapeutics' long position.| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
| CytomX Therapeutics vs. Lyra Therapeutics | CytomX Therapeutics vs. Hookipa Pharma | CytomX Therapeutics vs. Cingulate Warrants | CytomX Therapeutics vs. SAB Biotherapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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