Correlation Between CytomX Therapeutics and Kiora Pharmaceuticals

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

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

Diversification Opportunities for CytomX Therapeutics and Kiora Pharmaceuticals

0.13

Correlation Coefficient

CytomX Therapeutics  Kiora Pharmaceuticals

Average diversification

The 3 months correlation between CytomX and Kiora is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and Kiora Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiora Pharmaceuticals 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 Kiora Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiora Pharmaceuticals has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and Kiora Pharmaceuticals go up and down completely randomly.

Pair Corralation between CytomX Therapeutics and Kiora Pharmaceuticals

Given the investment horizon of 90 days CytomX Therapeutics is expected to under-perform the Kiora Pharmaceuticals. In addition to that, CytomX Therapeutics is 1.07 times more volatile than Kiora Pharmaceuticals. It trades about -0.01 of its total potential returns per unit of risk. Kiora Pharmaceuticals is currently generating about 0.03 per unit of volatility. If you would invest  341.00  in Kiora Pharmaceuticals on September 14, 2024 and sell it today you would earn a total of  10.00  from holding Kiora Pharmaceuticals or generate 2.93% return on investment over 90 days.

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

CytomX Therapeutics  vs.  Kiora Pharmaceuticals

CytomX Therapeutics

Risk-Adjusted Performance

0 of 100

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 fairly strong primary indicators, CytomX Therapeutics is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Kiora Pharmaceuticals

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kiora Pharmaceuticals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kiora Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with CytomX Therapeutics and Kiora Pharmaceuticals

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

The idea behind CytomX Therapeutics and Kiora Pharmaceuticals 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.