Correlation Between Regenxbio and CytomX Therapeutics

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

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

Diversification Opportunities for Regenxbio and CytomX Therapeutics

0.52

Correlation Coefficient

Regenxbio  CytomX Therapeutics

Very weak diversification

The 3 months correlation between Regenxbio and CytomX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Regenxbio and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics and Regenxbio 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 Regenxbio 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 Regenxbio i.e., Regenxbio and CytomX Therapeutics go up and down completely randomly.

Pair Corralation between Regenxbio and CytomX Therapeutics

Given the investment horizon of 90 days Regenxbio is expected to generate 11.46 times less return on investment than CytomX Therapeutics. But when comparing it to its historical volatility, Regenxbio is 3.22 times less risky than CytomX Therapeutics. It trades about 0.04 of its potential returns per unit of risk. CytomX Therapeutics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  97.00  in CytomX Therapeutics on May 6, 2025 and sell it today you would earn a total of  138.00  from holding CytomX Therapeutics or generate 142.27% return on investment over 90 days.

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

Regenxbio  vs.  CytomX Therapeutics

Regenxbio

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Regenxbio are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Regenxbio showed solid returns over the last few months and may actually be approaching a breakup point.

CytomX Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CytomX Therapeutics are ranked lower than 10 (%) 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.

Pair Trading with Regenxbio and CytomX Therapeutics

The main advantage of trading using opposite Regenxbio and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regenxbio 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 Regenxbio 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..