Correlation Between EXACT Sciences and Bio Rad

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

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

Diversification Opportunities for EXACT Sciences and Bio Rad

-0.66

Correlation Coefficient

EXACT Sciences  Bio Rad

Excellent diversification

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

Pair Corralation between EXACT Sciences and Bio Rad

Given the investment horizon of 90 days EXACT Sciences is expected to under-perform the Bio Rad. But the stock apears to be less risky and, when comparing its historical volatility, EXACT Sciences is 1.45 times less risky than Bio Rad. The stock trades about -0.15 of its potential returns per unit of risk. The Bio Rad Laboratories is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  25,668  in Bio Rad Laboratories on May 10, 2025 and sell it today you would earn a total of  858.00  from holding Bio Rad Laboratories or generate 3.34% return on investment over 90 days.

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

EXACT Sciences  vs.  Bio Rad Laboratories

EXACT Sciences

Risk-Adjusted Performance

Weakest

Over the last 90 days EXACT Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bio Rad Laboratories

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with EXACT Sciences and Bio Rad

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

The idea behind EXACT Sciences and Bio Rad Laboratories 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.