Correlation Between GlycoMimetics and CytomX Therapeutics

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

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

Diversification Opportunities for GlycoMimetics and CytomX Therapeutics

-0.1

Correlation Coefficient

GlycoMimetics  CytomX Therapeutics

Good diversification

The 3 months correlation between GlycoMimetics and CytomX is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GlycoMimetics and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and GlycoMimetics 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 GlycoMimetics 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 GlycoMimetics i.e., GlycoMimetics and CytomX Therapeutics go up and down completely randomly.

Pair Corralation between GlycoMimetics and CytomX Therapeutics

Given the investment horizon of 90 days GlycoMimetics is expected to generate 1.21 times more return on investment than CytomX Therapeutics. However, GlycoMimetics is 1.21 times more volatile than CytomX Therapeutics. It trades about -0.01 of its potential returns per unit of risk. CytomX Therapeutics is currently generating about -0.15 per unit of risk. If you would invest  25.00  in GlycoMimetics on December 31, 2024 and sell it today you would lose (3.00) from holding GlycoMimetics or give up 12.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GlycoMimetics  vs.  CytomX Therapeutics

GlycoMimetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days GlycoMimetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, GlycoMimetics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

CytomX Therapeutics

Risk-Adjusted Performance

Very Weak

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

Pair Trading with GlycoMimetics and CytomX Therapeutics

The main advantage of trading using opposite GlycoMimetics and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlycoMimetics 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.

The idea behind GlycoMimetics and CytomX 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.