Correlation Between Puma Biotechnology and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Puma Biotechnology 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 Puma Biotechnology and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Biotechnology and CytomX Therapeutics, you can compare the effects of market volatilities on Puma Biotechnology 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 Puma Biotechnology with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Biotechnology and CytomX Therapeutics.
Diversification Opportunities for Puma Biotechnology and CytomX Therapeutics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and CytomX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Puma Biotechnology and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Puma Biotechnology 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 Puma Biotechnology 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 Puma Biotechnology i.e., Puma Biotechnology and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Puma Biotechnology and CytomX Therapeutics
Given the investment horizon of 90 days Puma Biotechnology is expected to generate 49.06 times less return on investment than CytomX Therapeutics. But when comparing it to its historical volatility, Puma Biotechnology is 2.9 times less risky than CytomX Therapeutics. It trades about 0.0 of its potential returns per unit of risk. CytomX Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 139.00 in CytomX Therapeutics on September 14, 2024 and sell it today you would lose (28.00) from holding CytomX Therapeutics or give up 20.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Biotechnology vs. CytomX Therapeutics
Performance |
| Timeline |
| Puma Biotechnology |
| CytomX Therapeutics |
Puma Biotechnology and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Biotechnology and CytomX Therapeutics
The main advantage of trading using opposite Puma Biotechnology and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Biotechnology 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.| Puma Biotechnology vs. Ultragenyx | Puma Biotechnology vs. Crinetics Pharmaceuticals | Puma Biotechnology vs. Arvinas | Puma Biotechnology vs. Revolution Medicines |
| CytomX Therapeutics vs. Puma Biotechnology | CytomX Therapeutics vs. Iovance Biotherapeutics | CytomX Therapeutics vs. Day One Biopharmaceuticals | CytomX Therapeutics vs. Inozyme Pharma |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |