Correlation Between CytomX Therapeutics and Aligos Therapeutics
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and Aligos 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 CytomX Therapeutics and Aligos Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and Aligos Therapeutics, you can compare the effects of market volatilities on CytomX Therapeutics and Aligos 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 CytomX Therapeutics with a short position of Aligos Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and Aligos Therapeutics.
Diversification Opportunities for CytomX Therapeutics and Aligos Therapeutics
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CytomX and Aligos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Aligos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aligos Therapeutics and CytomX Therapeutics 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 CytomX Therapeutics are associated (or correlated) with Aligos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aligos Therapeutics has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Aligos Therapeutics go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and Aligos Therapeutics
Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 0.63 times more return on investment than Aligos Therapeutics. However, CytomX Therapeutics is 1.58 times less risky than Aligos Therapeutics. It trades about -0.15 of its potential returns per unit of risk. Aligos Therapeutics is currently generating about -0.28 per unit of risk. If you would invest 102.00 in CytomX Therapeutics on December 28, 2024 and sell it today you would lose (40.00) from holding CytomX Therapeutics or give up 39.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CytomX Therapeutics vs. Aligos Therapeutics
Performance |
Timeline |
CytomX Therapeutics |
Aligos Therapeutics |
CytomX Therapeutics and Aligos Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CytomX Therapeutics and Aligos Therapeutics
The main advantage of trading using opposite CytomX Therapeutics and Aligos Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, Aligos 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 Aligos Therapeutics will offset losses from the drop in Aligos Therapeutics' long position.CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
Aligos Therapeutics vs. CytomX Therapeutics | Aligos Therapeutics vs. Spero Therapeutics | Aligos Therapeutics vs. Instil Bio | Aligos Therapeutics vs. NextCure |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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