Correlation Between Sera Prognostics and Exagen

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

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

Diversification Opportunities for Sera Prognostics and Exagen

0.19

Correlation Coefficient

Sera Prognostics  Exagen

Average diversification

The 3 months correlation between Sera and Exagen is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics i.e., Sera Prognostics and Exagen go up and down completely randomly.

Pair Corralation between Sera Prognostics and Exagen

Given the investment horizon of 90 days Sera Prognostics is expected to generate 4.01 times more return on investment than Exagen. However, Sera Prognostics is 4.01 times more volatile than Exagen Inc. It trades about 0.06 of its potential returns per unit of risk. Exagen Inc is currently generating about 0.15 per unit of risk. If you would invest  252.00  in Sera Prognostics on May 6, 2025 and sell it today you would earn a total of  18.00  from holding Sera Prognostics or generate 7.14% return on investment over 90 days.

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

Sera Prognostics  vs.  Exagen Inc

Sera Prognostics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sera Prognostics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sera Prognostics sustained solid returns over the last few months and may actually be approaching a breakup point.

Exagen Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exagen Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Exagen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sera Prognostics and Exagen

The main advantage of trading using opposite Sera Prognostics and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics 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 Sera Prognostics 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.