Correlation Between CytomX Therapeutics and BioLife Solutions

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

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

Diversification Opportunities for CytomX Therapeutics and BioLife Solutions

-0.5

Correlation Coefficient

CytomX Therapeutics  BioLife Solutions

Very good diversification

The 3 months correlation between CytomX and BioLife is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding CytomX Therapeutics and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions 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 BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of CytomX Therapeutics i.e., CytomX Therapeutics and BioLife Solutions go up and down completely randomly.

Pair Corralation between CytomX Therapeutics and BioLife Solutions

Given the investment horizon of 90 days CytomX Therapeutics is expected to generate 5.42 times more return on investment than BioLife Solutions. However, CytomX Therapeutics is 5.42 times more volatile than BioLife Solutions. It trades about 0.15 of its potential returns per unit of risk. BioLife Solutions is currently generating about -0.06 per unit of risk. If you would invest  80.00  in CytomX Therapeutics on May 2, 2025 and sell it today you would earn a total of  152.00  from holding CytomX Therapeutics or generate 190.0% return on investment over 90 days.

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

CytomX Therapeutics  vs.  BioLife Solutions

CytomX Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CytomX Therapeutics are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, CytomX Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

BioLife Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioLife Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CytomX Therapeutics and BioLife Solutions

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

The idea behind CytomX Therapeutics and BioLife Solutions 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.