Correlation Between Vigil Neuroscience and Exagen

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

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

Diversification Opportunities for Vigil Neuroscience and Exagen

-0.5

Correlation Coefficient

Vigil Neuroscience  Exagen

Very good diversification

The 3 months correlation between Vigil and Exagen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Vigil Neuroscience and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Vigil Neuroscience 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 Vigil Neuroscience 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 Vigil Neuroscience i.e., Vigil Neuroscience and Exagen go up and down completely randomly.

Pair Corralation between Vigil Neuroscience and Exagen

Given the investment horizon of 90 days Vigil Neuroscience is expected to generate 2.54 times less return on investment than Exagen. But when comparing it to its historical volatility, Vigil Neuroscience is 1.11 times less risky than Exagen. It trades about 0.02 of its potential returns per unit of risk. Exagen Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  270.00  in Exagen Inc on August 15, 2024 and sell it today you would earn a total of  9.00  from holding Exagen Inc or generate 3.33% return on investment over 90 days.

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

Vigil Neuroscience  vs.  Exagen Inc

Vigil Neuroscience

Risk-Adjusted Performance

2 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vigil Neuroscience are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating technical and fundamental indicators, Vigil Neuroscience may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Exagen Inc

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Exagen Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Exagen is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Vigil Neuroscience and Exagen

The main advantage of trading using opposite Vigil Neuroscience and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vigil Neuroscience 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 Vigil Neuroscience 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.