Correlation Between EXACT Sciences and IQVIA Holdings
Can any of the company-specific risk be diversified away by investing in both EXACT Sciences and IQVIA Holdings 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 IQVIA Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXACT Sciences and IQVIA Holdings, you can compare the effects of market volatilities on EXACT Sciences and IQVIA Holdings 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 IQVIA Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXACT Sciences and IQVIA Holdings.
Diversification Opportunities for EXACT Sciences and IQVIA Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EXACT and IQVIA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding EXACT Sciences and IQVIA Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQVIA Holdings 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 IQVIA Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQVIA Holdings has no effect on the direction of EXACT Sciences i.e., EXACT Sciences and IQVIA Holdings go up and down completely randomly.
Pair Corralation between EXACT Sciences and IQVIA Holdings
Given the investment horizon of 90 days EXACT Sciences is expected to under-perform the IQVIA Holdings. In addition to that, EXACT Sciences is 2.58 times more volatile than IQVIA Holdings. It trades about -0.15 of its total potential returns per unit of risk. IQVIA Holdings is currently generating about -0.12 per unit of volatility. If you would invest 21,754 in IQVIA Holdings on August 27, 2024 and sell it today you would lose (1,352) from holding IQVIA Holdings or give up 6.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EXACT Sciences vs. IQVIA Holdings
Performance |
| Timeline |
| EXACT Sciences |
| IQVIA Holdings |
EXACT Sciences and IQVIA Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXACT Sciences and IQVIA Holdings
The main advantage of trading using opposite EXACT Sciences and IQVIA Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXACT Sciences position performs unexpectedly, IQVIA Holdings 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 IQVIA Holdings will offset losses from the drop in IQVIA Holdings' long position.| EXACT Sciences vs. Eliem Therapeutics | EXACT Sciences vs. HCW Biologics | EXACT Sciences vs. Scpharmaceuticals | EXACT Sciences vs. Milestone Pharmaceuticals |
| IQVIA Holdings vs. Charles River Laboratories | IQVIA Holdings vs. Laboratory of | IQVIA Holdings vs. Medpace Holdings | IQVIA Holdings vs. Waters |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |