Correlation Between Samsung Electronics and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and CytomX Therapeutics, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and CytomX Therapeutics.
Diversification Opportunities for Samsung Electronics and CytomX Therapeutics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and CytomX is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Samsung Electronics and CytomX Therapeutics
Assuming the 90 days horizon Samsung Electronics is expected to generate 28.99 times less return on investment than CytomX Therapeutics. But when comparing it to its historical volatility, Samsung Electronics Co is 160.06 times less risky than CytomX Therapeutics. It trades about 0.1 of its potential returns per unit of risk. 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 (84.30) from holding CytomX Therapeutics or give up 49.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. CytomX Therapeutics
Performance |
| Timeline |
| Samsung Electronics |
| CytomX Therapeutics |
Samsung Electronics and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and CytomX Therapeutics
The main advantage of trading using opposite Samsung Electronics and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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