Correlation Between Bionomics and Exicure
Can any of the company-specific risk be diversified away by investing in both Bionomics and Exicure 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 Bionomics and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionomics Ltd ADR and Exicure, you can compare the effects of market volatilities on Bionomics and Exicure 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 Bionomics with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionomics and Exicure.
Diversification Opportunities for Bionomics and Exicure
Very good diversification
The 3 months correlation between Bionomics and Exicure is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bionomics Ltd ADR and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Bionomics 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 Bionomics Ltd ADR are associated (or correlated) with Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Bionomics i.e., Bionomics and Exicure go up and down completely randomly.
Pair Corralation between Bionomics and Exicure
Given the investment horizon of 90 days Bionomics is expected to generate 20.77 times less return on investment than Exicure. But when comparing it to its historical volatility, Bionomics Ltd ADR is 1.09 times less risky than Exicure. It trades about 0.01 of its potential returns per unit of risk. Exicure is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Exicure on August 29, 2024 and sell it today you would earn a total of 2,977 from holding Exicure or generate 1340.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bionomics Ltd ADR vs. Exicure
Performance |
| Timeline |
| Bionomics ADR |
| Exicure |
Bionomics and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionomics and Exicure
The main advantage of trading using opposite Bionomics and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionomics position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.| Bionomics vs. Accustem Sciences | Bionomics vs. Scisparc | Bionomics vs. Anebulo Pharmaceuticals | Bionomics vs. Pmv Pharmaceuticals |
| Exicure vs. Ikena Oncology | Exicure vs. Eliem Therapeutics | Exicure vs. HCW Biologics | Exicure vs. RenovoRx |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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