Correlation Between Burning Rock and Exagen
Can any of the company-specific risk be diversified away by investing in both Burning Rock 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 Burning Rock and Exagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burning Rock Biotech and Exagen Inc, you can compare the effects of market volatilities on Burning Rock 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 Burning Rock with a short position of Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and Exagen.
Diversification Opportunities for Burning Rock and Exagen
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Burning and Exagen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Burning Rock 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 Burning Rock Biotech 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 Burning Rock i.e., Burning Rock and Exagen go up and down completely randomly.
Pair Corralation between Burning Rock and Exagen
Considering the 90-day investment horizon Burning Rock Biotech is expected to under-perform the Exagen. In addition to that, Burning Rock is 1.11 times more volatile than Exagen Inc. It trades about -0.03 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 241.00 in Exagen Inc on August 27, 2024 and sell it today you would earn a total of 169.00 from holding Exagen Inc or generate 70.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burning Rock Biotech vs. Exagen Inc
Performance |
| Timeline |
| Burning Rock Biotech |
| Exagen Inc |
Burning Rock and Exagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and Exagen
The main advantage of trading using opposite Burning Rock and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock 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.| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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