Correlation Between Exscientia and Replimune
Can any of the company-specific risk be diversified away by investing in both Exscientia and Replimune 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 Exscientia and Replimune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exscientia Ltd ADR and Replimune Group, you can compare the effects of market volatilities on Exscientia and Replimune 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 Exscientia with a short position of Replimune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exscientia and Replimune.
Diversification Opportunities for Exscientia and Replimune
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exscientia and Replimune is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Exscientia Ltd ADR and Replimune Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Replimune Group and Exscientia 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 Exscientia Ltd ADR are associated (or correlated) with Replimune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Replimune Group has no effect on the direction of Exscientia i.e., Exscientia and Replimune go up and down completely randomly.
Pair Corralation between Exscientia and Replimune
Given the investment horizon of 90 days Exscientia Ltd ADR is expected to under-perform the Replimune. But the stock apears to be less risky and, when comparing its historical volatility, Exscientia Ltd ADR is 1.47 times less risky than Replimune. The stock trades about -0.04 of its potential returns per unit of risk. The Replimune Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,113 in Replimune Group on September 26, 2024 and sell it today you would earn a total of 137.00 from holding Replimune Group or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.08% |
| Values | Daily Returns |
Exscientia Ltd ADR vs. Replimune Group
Performance |
| Timeline |
| Exscientia ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Replimune Group |
Exscientia and Replimune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exscientia and Replimune
The main advantage of trading using opposite Exscientia and Replimune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exscientia position performs unexpectedly, Replimune 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 Replimune will offset losses from the drop in Replimune's long position.| Exscientia vs. Zura Bio Limited | Exscientia vs. Elevation Oncology | Exscientia vs. Recursion Pharmaceuticals | Exscientia vs. Atea Pharmaceuticals |
| Replimune vs. Fate Therapeutics | Replimune vs. Caribou Biosciences | Replimune vs. Karyopharm Therapeutics | Replimune vs. Hookipa Pharma |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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