Correlation Between Cognition Therapeutics and Exelixis
Can any of the company-specific risk be diversified away by investing in both Cognition Therapeutics and Exelixis 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 Cognition Therapeutics and Exelixis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognition Therapeutics and Exelixis, you can compare the effects of market volatilities on Cognition Therapeutics and Exelixis 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 Cognition Therapeutics with a short position of Exelixis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognition Therapeutics and Exelixis.
Diversification Opportunities for Cognition Therapeutics and Exelixis
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cognition and Exelixis is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cognition Therapeutics and Exelixis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exelixis and Cognition 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 Cognition Therapeutics are associated (or correlated) with Exelixis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exelixis has no effect on the direction of Cognition Therapeutics i.e., Cognition Therapeutics and Exelixis go up and down completely randomly.
Pair Corralation between Cognition Therapeutics and Exelixis
Given the investment horizon of 90 days Cognition Therapeutics is expected to under-perform the Exelixis. In addition to that, Cognition Therapeutics is 2.04 times more volatile than Exelixis. It trades about -0.24 of its total potential returns per unit of risk. Exelixis is currently generating about 0.36 per unit of volatility. If you would invest 2,873 in Exelixis on August 30, 2024 and sell it today you would earn a total of 720.00 from holding Exelixis or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cognition Therapeutics vs. Exelixis
Performance |
| Timeline |
| Cognition Therapeutics |
| Exelixis |
Cognition Therapeutics and Exelixis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognition Therapeutics and Exelixis
The main advantage of trading using opposite Cognition Therapeutics and Exelixis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognition Therapeutics position performs unexpectedly, Exelixis 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 Exelixis will offset losses from the drop in Exelixis' long position.| Cognition Therapeutics vs. Bright Minds Biosciences | Cognition Therapeutics vs. HP Inc | Cognition Therapeutics vs. Intel | Cognition Therapeutics vs. Chevron Corp |
| Exelixis vs. TG Therapeutics | Exelixis vs. Viking Therapeutics | Exelixis vs. Madrigal Pharmaceuticals | Exelixis vs. BioXcel Therapeutics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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