Correlation Between Cell Source and Xencor

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

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

Diversification Opportunities for Cell Source and Xencor

0.25

Correlation Coefficient

Cell Source  Xencor

Modest diversification

The 3 months correlation between Cell and Xencor is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cell Source and Xencor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xencor Inc and Cell Source 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 Cell Source 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 Cell Source i.e., Cell Source and Xencor go up and down completely randomly.

Pair Corralation between Cell Source and Xencor

Given the investment horizon of 90 days Cell Source is expected to generate 2.99 times more return on investment than Xencor. However, Cell Source is 2.99 times more volatile than Xencor Inc. It trades about 0.11 of its potential returns per unit of risk. Xencor Inc is currently generating about 0.15 per unit of risk. If you would invest  28.00  in Cell Source on July 3, 2025 and sell it today you would earn a total of  14.00  from holding Cell Source or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Cell Source  vs.  Xencor Inc

Cell Source

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cell Source are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Cell Source unveiled solid returns over the last few months and may actually be approaching a breakup point.

Xencor Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Xencor Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Xencor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cell Source and Xencor

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

The idea behind Cell Source and Xencor Inc 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.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.