Correlation Between Grifols SA and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Grifols SA 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 Grifols SA and CytomX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grifols SA ADR and CytomX Therapeutics, you can compare the effects of market volatilities on Grifols SA 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 Grifols SA with a short position of CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grifols SA and CytomX Therapeutics.
Diversification Opportunities for Grifols SA and CytomX Therapeutics
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grifols and CytomX is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Grifols SA ADR and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Grifols SA 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 Grifols SA ADR 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 Grifols SA i.e., Grifols SA and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Grifols SA and CytomX Therapeutics
Given the investment horizon of 90 days Grifols SA is expected to generate 17.48 times less return on investment than CytomX Therapeutics. But when comparing it to its historical volatility, Grifols SA ADR is 5.66 times less risky than CytomX Therapeutics. It trades about 0.02 of its potential returns per unit of risk. CytomX Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 245.00 in CytomX Therapeutics on February 29, 2024 and sell it today you would lose (66.00) from holding CytomX Therapeutics or give up 26.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grifols SA ADR vs. CytomX Therapeutics
Performance |
Timeline |
Grifols SA ADR |
CytomX Therapeutics |
Grifols SA and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grifols SA and CytomX Therapeutics
The main advantage of trading using opposite Grifols SA and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grifols SA 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.Grifols SA vs. MicroAlgo | Grifols SA vs. Morningstar Unconstrained Allocation | Grifols SA vs. T Rowe Price | Grifols SA vs. Nt International Small Mid |
CytomX Therapeutics vs. MicroAlgo | CytomX Therapeutics vs. Morningstar Unconstrained Allocation | CytomX Therapeutics vs. T Rowe Price | CytomX Therapeutics vs. Nt International Small Mid |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Stocks Directory Find actively traded stocks across global markets | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |