Correlation Between EXACT Sciences and Eliem Therapeutics
Can any of the company-specific risk be diversified away by investing in both EXACT Sciences and Eliem Therapeutics 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 EXACT Sciences and Eliem Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXACT Sciences and Eliem Therapeutics, you can compare the effects of market volatilities on EXACT Sciences and Eliem Therapeutics 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 EXACT Sciences with a short position of Eliem Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXACT Sciences and Eliem Therapeutics.
Diversification Opportunities for EXACT Sciences and Eliem Therapeutics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EXACT and Eliem is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding EXACT Sciences and Eliem Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eliem Therapeutics and EXACT Sciences 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 EXACT Sciences are associated (or correlated) with Eliem Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eliem Therapeutics has no effect on the direction of EXACT Sciences i.e., EXACT Sciences and Eliem Therapeutics go up and down completely randomly.
Pair Corralation between EXACT Sciences and Eliem Therapeutics
Given the investment horizon of 90 days EXACT Sciences is expected to generate 1.18 times more return on investment than Eliem Therapeutics. However, EXACT Sciences is 1.18 times more volatile than Eliem Therapeutics. It trades about -0.15 of its potential returns per unit of risk. Eliem Therapeutics is currently generating about -0.29 per unit of risk. If you would invest 6,935 in EXACT Sciences on August 28, 2024 and sell it today you would lose (1,421) from holding EXACT Sciences or give up 20.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
EXACT Sciences vs. Eliem Therapeutics
Performance |
| Timeline |
| EXACT Sciences |
| Eliem Therapeutics |
EXACT Sciences and Eliem Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXACT Sciences and Eliem Therapeutics
The main advantage of trading using opposite EXACT Sciences and Eliem Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXACT Sciences position performs unexpectedly, Eliem Therapeutics 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 Eliem Therapeutics will offset losses from the drop in Eliem Therapeutics' long position.| EXACT Sciences vs. Eliem Therapeutics | EXACT Sciences vs. HCW Biologics | EXACT Sciences vs. Scpharmaceuticals | EXACT Sciences vs. Milestone Pharmaceuticals |
| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |