Correlation Between XChange TECINC and Immunitybio

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

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

Diversification Opportunities for XChange TECINC and Immunitybio

0.77

Correlation Coefficient

XChange TECINC  Immunitybio

Poor diversification

The 3 months correlation between XChange and Immunitybio is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding XChange TECINC and Immunitybio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunitybio and XChange TECINC 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 XChange TECINC are associated (or correlated) with Immunitybio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunitybio has no effect on the direction of XChange TECINC i.e., XChange TECINC and Immunitybio go up and down completely randomly.

Pair Corralation between XChange TECINC and Immunitybio

Considering the 90-day investment horizon XChange TECINC is expected to under-perform the Immunitybio. In addition to that, XChange TECINC is 1.62 times more volatile than Immunitybio. It trades about -0.07 of its total potential returns per unit of risk. Immunitybio is currently generating about -0.08 per unit of volatility. If you would invest  274.00  in Immunitybio on September 13, 2025 and sell it today you would lose (55.00) from holding Immunitybio or give up 20.07% of portfolio value over 90 days.

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

XChange TECINC  vs.  Immunitybio

XChange TECINC

Risk-Adjusted Performance

Weakest

Over the last 90 days XChange TECINC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Immunitybio

Risk-Adjusted Performance

Weakest

Over the last 90 days Immunitybio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with XChange TECINC and Immunitybio

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

The idea behind XChange TECINC and Immunitybio 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.