Correlation Between Xilio Development and NextCure
Can any of the company-specific risk be diversified away by investing in both Xilio Development and NextCure 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 Xilio Development and NextCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xilio Development and NextCure, you can compare the effects of market volatilities on Xilio Development and NextCure 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 Xilio Development with a short position of NextCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilio Development and NextCure.
Diversification Opportunities for Xilio Development and NextCure
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xilio and NextCure is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Xilio Development and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure and Xilio Development 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 Xilio Development are associated (or correlated) with NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Xilio Development i.e., Xilio Development and NextCure go up and down completely randomly.
Pair Corralation between Xilio Development and NextCure
Considering the 90-day investment horizon Xilio Development is expected to under-perform the NextCure. In addition to that, Xilio Development is 1.67 times more volatile than NextCure. It trades about 0.0 of its total potential returns per unit of risk. NextCure is currently generating about 0.0 per unit of volatility. If you would invest 157.00 in NextCure on September 12, 2024 and sell it today you would lose (39.00) from holding NextCure or give up 24.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilio Development vs. NextCure
Performance |
| Timeline |
| Xilio Development |
| NextCure |
Xilio Development and NextCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilio Development and NextCure
The main advantage of trading using opposite Xilio Development and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilio Development position performs unexpectedly, NextCure 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 NextCure will offset losses from the drop in NextCure's long position.| Xilio Development vs. Connect Biopharma Holdings | Xilio Development vs. Tyra Biosciences | Xilio Development vs. RAPT Therapeutics | Xilio Development vs. Mineralys Therapeutics, Common |
| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly Biosciences |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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