Correlation Between Moleculin Biotech and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Moleculin Biotech 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 Moleculin Biotech and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moleculin Biotech and CytomX Therapeutics, you can compare the effects of market volatilities on Moleculin Biotech 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 Moleculin Biotech with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moleculin Biotech and CytomX Therapeutics.
Diversification Opportunities for Moleculin Biotech and CytomX Therapeutics
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Moleculin and CytomX is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Moleculin Biotech and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Moleculin Biotech 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 Moleculin Biotech 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 Moleculin Biotech i.e., Moleculin Biotech and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Moleculin Biotech and CytomX Therapeutics
Given the investment horizon of 90 days Moleculin Biotech is expected to generate 1.62 times more return on investment than CytomX Therapeutics. However, Moleculin Biotech is 1.62 times more volatile than CytomX Therapeutics. It trades about 0.03 of its potential returns per unit of risk. CytomX Therapeutics is currently generating about 0.03 per unit of risk. If you would invest 262.00 in Moleculin Biotech on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Moleculin Biotech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moleculin Biotech vs. CytomX Therapeutics
Performance |
| Timeline |
| Moleculin Biotech |
| CytomX Therapeutics |
Moleculin Biotech and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moleculin Biotech and CytomX Therapeutics
The main advantage of trading using opposite Moleculin Biotech and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moleculin Biotech 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.| Moleculin Biotech vs. Bright Minds Biosciences | Moleculin Biotech vs. HP Inc | Moleculin Biotech vs. Intel | Moleculin Biotech vs. Chevron Corp |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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