Correlation Between Ambrx Biopharma and Leap Therapeutics

Can any of the company-specific risk be diversified away by investing in both Ambrx Biopharma and Leap 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 Ambrx Biopharma and Leap Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ambrx Biopharma American and Leap Therapeutics, you can compare the effects of market volatilities on Ambrx Biopharma and Leap 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 Ambrx Biopharma with a short position of Leap Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrx Biopharma and Leap Therapeutics.

Diversification Opportunities for Ambrx Biopharma and Leap Therapeutics

0.0

Correlation Coefficient

Ambrx Biopharma  Leap Therapeutics

Pay attention - limited upside

The 3 months correlation between Ambrx and Leap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ambrx Biopharma American and Leap Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leap Therapeutics and Ambrx Biopharma 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 Ambrx Biopharma American are associated (or correlated) with Leap Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leap Therapeutics has no effect on the direction of Ambrx Biopharma i.e., Ambrx Biopharma and Leap Therapeutics go up and down completely randomly.

Pair Corralation between Ambrx Biopharma and Leap Therapeutics

If you would invest (100.00) in Ambrx Biopharma American on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Ambrx Biopharma American or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ambrx Biopharma American  vs.  Leap Therapeutics

Ambrx Biopharma American

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ambrx Biopharma American has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ambrx Biopharma is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Leap Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Leap Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Ambrx Biopharma and Leap Therapeutics

The main advantage of trading using opposite Ambrx Biopharma and Leap Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrx Biopharma position performs unexpectedly, Leap 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 Leap Therapeutics will offset losses from the drop in Leap Therapeutics' long position.

The idea behind Ambrx Biopharma American and Leap Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.