Correlation Between PepGen and Xencor
Can any of the company-specific risk be diversified away by investing in both PepGen 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 PepGen and Xencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Xencor Inc, you can compare the effects of market volatilities on PepGen 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 PepGen with a short position of Xencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Xencor.
Diversification Opportunities for PepGen and Xencor
Almost no diversification
The 3 months correlation between PepGen and Xencor is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Xencor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xencor Inc and PepGen 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 PepGen 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 PepGen i.e., PepGen and Xencor go up and down completely randomly.
Pair Corralation between PepGen and Xencor
Given the investment horizon of 90 days PepGen is expected to generate 12.36 times more return on investment than Xencor. However, PepGen is 12.36 times more volatile than Xencor Inc. It trades about 0.12 of its potential returns per unit of risk. Xencor Inc is currently generating about -0.71 per unit of risk. If you would invest 186.00 in PepGen on November 27, 2024 and sell it today you would earn a total of 43.00 from holding PepGen or generate 23.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Xencor Inc
Performance |
| Timeline |
| PepGen |
| Xencor Inc |
PepGen and Xencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Xencor
The main advantage of trading using opposite PepGen and Xencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen 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.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. MediciNova | PepGen vs. Pharvaris BV | PepGen vs. Molecular Partners AG |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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