Correlation Between Pyxis Oncology and Quanex Building

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

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

Diversification Opportunities for Pyxis Oncology and Quanex Building

-0.66

Correlation Coefficient

Pyxis Oncology  Quanex Building

Excellent diversification

The 3 months correlation between Pyxis and Quanex is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Oncology and Quanex Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanex Building Products and Pyxis Oncology 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 Pyxis Oncology are associated (or correlated) with Quanex Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanex Building Products has no effect on the direction of Pyxis Oncology i.e., Pyxis Oncology and Quanex Building go up and down completely randomly.

Pair Corralation between Pyxis Oncology and Quanex Building

Given the investment horizon of 90 days Pyxis Oncology is expected to generate 2.88 times more return on investment than Quanex Building. However, Pyxis Oncology is 2.88 times more volatile than Quanex Building Products. It trades about 0.21 of its potential returns per unit of risk. Quanex Building Products is currently generating about -0.06 per unit of risk. If you would invest  183.00  in Pyxis Oncology on September 9, 2025 and sell it today you would earn a total of  235.00  from holding Pyxis Oncology or generate 128.42% return on investment over 90 days.

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

Pyxis Oncology  vs.  Quanex Building Products

Pyxis Oncology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pyxis Oncology are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Pyxis Oncology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Quanex Building Products

Risk-Adjusted Performance

Weakest

Over the last 90 days Quanex Building Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Pyxis Oncology and Quanex Building

The main advantage of trading using opposite Pyxis Oncology and Quanex Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Oncology position performs unexpectedly, Quanex Building 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 Quanex Building will offset losses from the drop in Quanex Building's long position.

The idea behind Pyxis Oncology and Quanex Building Products 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.