Correlation Between Aclaris Therapeutics and Exagen
Can any of the company-specific risk be diversified away by investing in both Aclaris Therapeutics 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 Aclaris Therapeutics and Exagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aclaris Therapeutics and Exagen Inc, you can compare the effects of market volatilities on Aclaris Therapeutics 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 Aclaris Therapeutics with a short position of Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclaris Therapeutics and Exagen.
Diversification Opportunities for Aclaris Therapeutics and Exagen
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aclaris and Exagen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aclaris Therapeutics and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Aclaris Therapeutics 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 Aclaris Therapeutics 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 Aclaris Therapeutics i.e., Aclaris Therapeutics and Exagen go up and down completely randomly.
Pair Corralation between Aclaris Therapeutics and Exagen
Given the investment horizon of 90 days Aclaris Therapeutics is expected to generate 1.89 times less return on investment than Exagen. In addition to that, Aclaris Therapeutics is 1.53 times more volatile than Exagen Inc. It trades about 0.02 of its total potential returns per unit of risk. Exagen Inc is currently generating about 0.05 per unit of volatility. If you would invest 243.00 in Exagen Inc on August 24, 2024 and sell it today you would earn a total of 167.00 from holding Exagen Inc or generate 68.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aclaris Therapeutics vs. Exagen Inc
Performance |
| Timeline |
| Aclaris Therapeutics |
| Exagen Inc |
Aclaris Therapeutics and Exagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aclaris Therapeutics and Exagen
The main advantage of trading using opposite Aclaris Therapeutics and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclaris Therapeutics 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.| Aclaris Therapeutics vs. Neogen | Aclaris Therapeutics vs. Qiagen NV | Aclaris Therapeutics vs. Sotera Health Co | Aclaris Therapeutics vs. RadNet Inc |
| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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