Correlation Between Exagen and Aclaris Therapeutics
Can any of the company-specific risk be diversified away by investing in both Exagen and Aclaris Therapeutics 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 Exagen and Aclaris Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Aclaris Therapeutics, you can compare the effects of market volatilities on Exagen and Aclaris Therapeutics 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 Exagen with a short position of Aclaris Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Aclaris Therapeutics.
Diversification Opportunities for Exagen and Aclaris Therapeutics
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exagen and Aclaris is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Aclaris Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclaris Therapeutics and Exagen 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 Exagen Inc are associated (or correlated) with Aclaris Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclaris Therapeutics has no effect on the direction of Exagen i.e., Exagen and Aclaris Therapeutics go up and down completely randomly.
Pair Corralation between Exagen and Aclaris Therapeutics
Considering the 90-day investment horizon Exagen Inc is expected to generate 2.3 times more return on investment than Aclaris Therapeutics. However, Exagen is 2.3 times more volatile than Aclaris Therapeutics. It trades about 0.12 of its potential returns per unit of risk. Aclaris Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 203.00 in Exagen Inc on July 25, 2024 and sell it today you would earn a total of 80.00 from holding Exagen Inc or generate 39.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Exagen Inc vs. Aclaris Therapeutics
Performance |
Timeline |
Exagen Inc |
Aclaris Therapeutics |
Exagen and Aclaris Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exagen and Aclaris Therapeutics
The main advantage of trading using opposite Exagen and Aclaris Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Aclaris Therapeutics 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 Aclaris Therapeutics will offset losses from the drop in Aclaris Therapeutics' long position.Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
Aclaris Therapeutics vs. Neogen | Aclaris Therapeutics vs. Qiagen NV | Aclaris Therapeutics vs. Sotera Health Co | Aclaris Therapeutics vs. RadNet Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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