Correlation Between CytomX Therapeutics and NantKwest
Can any of the company-specific risk be diversified away by investing in both CytomX Therapeutics and NantKwest 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 NantKwest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CytomX Therapeutics and NantKwest, you can compare the effects of market volatilities on CytomX Therapeutics and NantKwest 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 NantKwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CytomX Therapeutics and NantKwest.
Diversification Opportunities for CytomX Therapeutics and NantKwest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CytomX and NantKwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and NantKwest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NantKwest 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 NantKwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NantKwest has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and NantKwest go up and down completely randomly.
Pair Corralation between CytomX Therapeutics and NantKwest
If you would invest 206.00 in CytomX Therapeutics on February 6, 2024 and sell it today you would earn a total of 237.00 from holding CytomX Therapeutics or generate 115.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CytomX Therapeutics vs. NantKwest
Performance |
| Timeline |
| CytomX Therapeutics |
| NantKwest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CytomX Therapeutics and NantKwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CytomX Therapeutics and NantKwest
The main advantage of trading using opposite CytomX Therapeutics and NantKwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CytomX Therapeutics position performs unexpectedly, NantKwest 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 NantKwest will offset losses from the drop in NantKwest's long position.| CytomX Therapeutics vs. Veritas Pharma | CytomX Therapeutics vs. Sangui Biotech International | CytomX Therapeutics vs. Raphael Pharmaceutical | CytomX Therapeutics vs. GelStat Corp |
| NantKwest vs. Ambev SA ADR | NantKwest vs. Westrock Coffee | NantKwest vs. Turning Point Brands | NantKwest vs. Microbot Medical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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