Correlation Between Crinetics Pharmaceuticals and Xencor
Can any of the company-specific risk be diversified away by investing in both Crinetics Pharmaceuticals and Xencor 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 Crinetics Pharmaceuticals and Xencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crinetics Pharmaceuticals and Xencor Inc, you can compare the effects of market volatilities on Crinetics Pharmaceuticals and Xencor 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 Crinetics Pharmaceuticals with a short position of Xencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crinetics Pharmaceuticals and Xencor.
Diversification Opportunities for Crinetics Pharmaceuticals and Xencor
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crinetics and Xencor is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Crinetics Pharmaceuticals and Xencor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xencor Inc and Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals are associated (or correlated) with Xencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xencor Inc has no effect on the direction of Crinetics Pharmaceuticals i.e., Crinetics Pharmaceuticals and Xencor go up and down completely randomly.
Pair Corralation between Crinetics Pharmaceuticals and Xencor
Given the investment horizon of 90 days Crinetics Pharmaceuticals is expected to generate 7.29 times less return on investment than Xencor. In addition to that, Crinetics Pharmaceuticals is 1.2 times more volatile than Xencor Inc. It trades about 0.06 of its total potential returns per unit of risk. Xencor Inc is currently generating about 0.49 per unit of volatility. If you would invest 2,101 in Xencor Inc on September 1, 2024 and sell it today you would earn a total of 459.00 from holding Xencor Inc or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crinetics Pharmaceuticals vs. Xencor Inc
Performance |
| Timeline |
| Crinetics Pharmaceuticals |
| Xencor Inc |
Crinetics Pharmaceuticals and Xencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crinetics Pharmaceuticals and Xencor
The main advantage of trading using opposite Crinetics Pharmaceuticals and Xencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crinetics Pharmaceuticals position performs unexpectedly, Xencor 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 Xencor will offset losses from the drop in Xencor's long position.| Crinetics Pharmaceuticals vs. Tff Pharmaceuticals | Crinetics Pharmaceuticals vs. Eliem Therapeutics | Crinetics Pharmaceuticals vs. Inhibrx | Crinetics Pharmaceuticals vs. Enliven Therapeutics |
| Xencor vs. Edgewise Therapeutics | Xencor vs. Keros Therapeutics | Xencor vs. Monte Rosa Therapeutics | Xencor vs. Mineralys Therapeutics, Common |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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