Correlation Between Xencor and SpringWorks Therapeutics
Can any of the company-specific risk be diversified away by investing in both Xencor and SpringWorks Therapeutics 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 Xencor and SpringWorks Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xencor Inc and SpringWorks Therapeutics, you can compare the effects of market volatilities on Xencor and SpringWorks Therapeutics 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 Xencor with a short position of SpringWorks Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xencor and SpringWorks Therapeutics.
Diversification Opportunities for Xencor and SpringWorks Therapeutics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xencor and SpringWorks is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xencor Inc and SpringWorks Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpringWorks Therapeutics and Xencor 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 Xencor Inc are associated (or correlated) with SpringWorks Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpringWorks Therapeutics has no effect on the direction of Xencor i.e., Xencor and SpringWorks Therapeutics go up and down completely randomly.
Pair Corralation between Xencor and SpringWorks Therapeutics
Given the investment horizon of 90 days Xencor Inc is expected to under-perform the SpringWorks Therapeutics. In addition to that, Xencor is 24.21 times more volatile than SpringWorks Therapeutics. It trades about 0.0 of its total potential returns per unit of risk. SpringWorks Therapeutics is currently generating about 0.32 per unit of volatility. If you would invest 4,627 in SpringWorks Therapeutics on May 18, 2025 and sell it today you would earn a total of 72.00 from holding SpringWorks Therapeutics or generate 1.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 48.39% |
Values | Daily Returns |
Xencor Inc vs. SpringWorks Therapeutics
Performance |
Timeline |
Xencor Inc |
SpringWorks Therapeutics |
Risk-Adjusted Performance
Solid
Weak | Strong |
Xencor and SpringWorks Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xencor and SpringWorks Therapeutics
The main advantage of trading using opposite Xencor and SpringWorks Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xencor position performs unexpectedly, SpringWorks Therapeutics 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 SpringWorks Therapeutics will offset losses from the drop in SpringWorks Therapeutics' long position.Xencor vs. Enanta Pharmaceuticals | Xencor vs. Syndax Pharmaceuticals | Xencor vs. Crinetics Pharmaceuticals | Xencor vs. Ventyx Biosciences |
SpringWorks Therapeutics vs. Revolution Medicines | SpringWorks Therapeutics vs. Stoke Therapeutics | SpringWorks Therapeutics vs. Cytokinetics | SpringWorks Therapeutics vs. Relay Therapeutics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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