Correlation Between Nuvation Bio and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Nuvation Bio 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 Nuvation Bio and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvation Bio and CytomX Therapeutics, you can compare the effects of market volatilities on Nuvation Bio 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 Nuvation Bio with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvation Bio and CytomX Therapeutics.
Diversification Opportunities for Nuvation Bio and CytomX Therapeutics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuvation and CytomX is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nuvation Bio and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Nuvation Bio 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 Nuvation Bio 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 Nuvation Bio i.e., Nuvation Bio and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Nuvation Bio and CytomX Therapeutics
Given the investment horizon of 90 days Nuvation Bio is expected to generate 1.29 times more return on investment than CytomX Therapeutics. However, Nuvation Bio is 1.29 times more volatile than CytomX Therapeutics. It trades about 0.01 of its potential returns per unit of risk. CytomX Therapeutics is currently generating about -0.14 per unit of risk. If you would invest 296.00 in Nuvation Bio on August 24, 2024 and sell it today you would lose (26.00) from holding Nuvation Bio or give up 8.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Nuvation Bio vs. CytomX Therapeutics
Performance |
| Timeline |
| Nuvation Bio |
| CytomX Therapeutics |
Nuvation Bio and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvation Bio and CytomX Therapeutics
The main advantage of trading using opposite Nuvation Bio and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvation Bio 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.| Nuvation Bio vs. ZyVersa Therapeutics | Nuvation Bio vs. Sonnet Biotherapeutics Holdings | Nuvation Bio vs. Zura Bio Limited | Nuvation Bio vs. Phio Pharmaceuticals Corp |
| CytomX Therapeutics vs. ZyVersa Therapeutics | CytomX Therapeutics vs. Sonnet Biotherapeutics Holdings | CytomX Therapeutics vs. Zura Bio Limited | CytomX Therapeutics vs. Phio Pharmaceuticals Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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