Correlation Between Marker Therapeutics and Exagen

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

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

Diversification Opportunities for Marker Therapeutics and Exagen

-0.31

Correlation Coefficient

Marker Therapeutics  Exagen

Very good diversification

The 3 months correlation between Marker and Exagen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Marker Therapeutics and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Marker Therapeutics 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 Marker Therapeutics are associated (or correlated) with Exagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exagen Inc has no effect on the direction of Marker Therapeutics i.e., Marker Therapeutics and Exagen go up and down completely randomly.

Pair Corralation between Marker Therapeutics and Exagen

Given the investment horizon of 90 days Marker Therapeutics is expected to generate 1.89 times more return on investment than Exagen. However, Marker Therapeutics is 1.89 times more volatile than Exagen Inc. It trades about -0.03 of its potential returns per unit of risk. Exagen Inc is currently generating about -0.24 per unit of risk. If you would invest  436.00  in Marker Therapeutics on February 2, 2024 and sell it today you would lose (16.00) from holding Marker Therapeutics or give up 3.67% of portfolio value over 90 days.

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

Marker Therapeutics  vs.  Exagen Inc

Marker Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marker Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Exagen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exagen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Marker Therapeutics and Exagen

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

The idea behind Marker Therapeutics and Exagen 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.