Correlation Between Durect and Exagen
Can any of the company-specific risk be diversified away by investing in both Durect 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 Durect and Exagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Durect and Exagen Inc, you can compare the effects of market volatilities on Durect 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 Durect with a short position of Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Durect and Exagen.
Diversification Opportunities for Durect and Exagen
Excellent diversification
The 3 months correlation between Durect and Exagen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Durect and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Durect 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 Durect 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 Durect i.e., Durect and Exagen go up and down completely randomly.
Pair Corralation between Durect and Exagen
Given the investment horizon of 90 days Durect is expected to under-perform the Exagen. In addition to that, Durect is 1.48 times more volatile than Exagen Inc. It trades about -0.01 of its total potential returns per unit of risk. Exagen Inc is currently generating about 0.04 per unit of volatility. If you would invest 323.00 in Exagen Inc on September 4, 2024 and sell it today you would earn a total of 96.00 from holding Exagen Inc or generate 29.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Durect vs. Exagen Inc
Performance |
| Timeline |
| Durect |
| Exagen Inc |
Durect and Exagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Durect and Exagen
The main advantage of trading using opposite Durect and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Durect 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.| Durect vs. Shuttle Pharmaceuticals | Durect vs. Organogenesis Holdings | Durect vs. Alpha Teknova | Durect vs. Sonoma Pharmaceuticals |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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