Correlation Between Vaccinex and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Vaccinex 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 Vaccinex and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaccinex and CytomX Therapeutics, you can compare the effects of market volatilities on Vaccinex 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 Vaccinex with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaccinex and CytomX Therapeutics.
Diversification Opportunities for Vaccinex and CytomX Therapeutics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vaccinex and CytomX is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Vaccinex 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 Vaccinex 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 Vaccinex i.e., Vaccinex and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Vaccinex and CytomX Therapeutics
Given the investment horizon of 90 days Vaccinex is expected to under-perform the CytomX Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Vaccinex is 1.38 times less risky than CytomX Therapeutics. The stock trades about -0.08 of its potential returns per unit of risk. The CytomX Therapeutics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 247.00 in CytomX Therapeutics on November 2, 2024 and sell it today you would lose (159.00) from holding CytomX Therapeutics or give up 64.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.75% |
| Values | Daily Returns |
Vaccinex vs. CytomX Therapeutics
Performance |
| Timeline |
| Vaccinex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CytomX Therapeutics |
Vaccinex and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaccinex and CytomX Therapeutics
The main advantage of trading using opposite Vaccinex and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaccinex 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.| Vaccinex vs. Protara Therapeutics | Vaccinex vs. Monopar Therapeutics | Vaccinex vs. Surrozen | Vaccinex vs. Salarius Pharmaceuticals |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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