Correlation Between Kura Oncology and Xencor
Can any of the company-specific risk be diversified away by investing in both Kura Oncology 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 Kura Oncology and Xencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kura Oncology and Xencor Inc, you can compare the effects of market volatilities on Kura Oncology 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 Kura Oncology with a short position of Xencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Oncology and Xencor.
Diversification Opportunities for Kura Oncology and Xencor
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kura and Xencor is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kura Oncology and Xencor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xencor Inc and Kura 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 Kura Oncology 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 Kura Oncology i.e., Kura Oncology and Xencor go up and down completely randomly.
Pair Corralation between Kura Oncology and Xencor
Given the investment horizon of 90 days Kura Oncology is expected to generate 1.33 times less return on investment than Xencor. But when comparing it to its historical volatility, Kura Oncology is 1.19 times less risky than Xencor. It trades about 0.13 of its potential returns per unit of risk. Xencor Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,243 in Xencor Inc on August 15, 2025 and sell it today you would earn a total of 191.00 from holding Xencor Inc or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kura Oncology vs. Xencor Inc
Performance |
| Timeline |
| Kura Oncology |
| Xencor Inc |
Kura Oncology and Xencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Oncology and Xencor
The main advantage of trading using opposite Kura Oncology and Xencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Oncology 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.| Kura Oncology vs. Prime Medicine, Common | Kura Oncology vs. Eyepoint Pharmaceuticals | Kura Oncology vs. ProKidney Corp | Kura Oncology vs. Bicara Therapeutics Common |
| Xencor vs. Nurix Therapeutics | Xencor vs. Oculis Holding AG | Xencor vs. Kodiak Sciences | Xencor vs. Phathom Pharmaceuticals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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