Correlation Between Recursion Pharmaceuticals and Exscientia

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

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

Diversification Opportunities for Recursion Pharmaceuticals and Exscientia

0.0

Correlation Coefficient

Recursion Pharmaceuticals  Exscientia

Pay attention - limited upside

The 3 months correlation between Recursion and Exscientia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Recursion Pharmaceuticals and Exscientia Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exscientia ADR and Recursion Pharmaceuticals 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 Recursion Pharmaceuticals are associated (or correlated) with Exscientia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exscientia ADR has no effect on the direction of Recursion Pharmaceuticals i.e., Recursion Pharmaceuticals and Exscientia go up and down completely randomly.

Pair Corralation between Recursion Pharmaceuticals and Exscientia

If you would invest  541.00  in Recursion Pharmaceuticals on April 20, 2025 and sell it today you would earn a total of  43.00  from holding Recursion Pharmaceuticals or generate 7.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Recursion Pharmaceuticals  vs.  Exscientia Ltd ADR

Recursion Pharmaceuticals

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Recursion Pharmaceuticals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Recursion Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Exscientia ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exscientia Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Exscientia is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Recursion Pharmaceuticals and Exscientia

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

The idea behind Recursion Pharmaceuticals and Exscientia Ltd ADR 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.