Correlation Between BioXcel Therapeutics and NextCure

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

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

Diversification Opportunities for BioXcel Therapeutics and NextCure

-0.72

Correlation Coefficient

BioXcel Therapeutics  NextCure

Pay attention - limited upside

The 3 months correlation between BioXcel and NextCure is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BioXcel Therapeutics and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure and BioXcel 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 BioXcel Therapeutics 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 BioXcel Therapeutics i.e., BioXcel Therapeutics and NextCure go up and down completely randomly.

Pair Corralation between BioXcel Therapeutics and NextCure

Given the investment horizon of 90 days BioXcel Therapeutics is expected to under-perform the NextCure. But the stock apears to be less risky and, when comparing its historical volatility, BioXcel Therapeutics is 1.67 times less risky than NextCure. The stock trades about -0.14 of its potential returns per unit of risk. The NextCure is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  493.00  in NextCure on August 31, 2025 and sell it today you would earn a total of  916.00  from holding NextCure or generate 185.8% return on investment over 90 days.

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

BioXcel Therapeutics  vs.  NextCure

BioXcel Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days BioXcel Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

NextCure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NextCure are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, NextCure exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioXcel Therapeutics and NextCure

The main advantage of trading using opposite BioXcel Therapeutics and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioXcel Therapeutics 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.

The idea behind BioXcel Therapeutics and NextCure 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.