Correlation Between Exelixis and Avantor
Can any of the company-specific risk be diversified away by investing in both Exelixis and Avantor 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 Exelixis and Avantor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelixis and Avantor, you can compare the effects of market volatilities on Exelixis and Avantor 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 Exelixis with a short position of Avantor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelixis and Avantor.
Diversification Opportunities for Exelixis and Avantor
Pay attention - limited upside
The 3 months correlation between Exelixis and Avantor is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Exelixis and Avantor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantor and Exelixis 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 Exelixis are associated (or correlated) with Avantor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantor has no effect on the direction of Exelixis i.e., Exelixis and Avantor go up and down completely randomly.
Pair Corralation between Exelixis and Avantor
Given the investment horizon of 90 days Exelixis is expected to generate 2.0 times more return on investment than Avantor. However, Exelixis is 2.0 times more volatile than Avantor. It trades about 0.4 of its potential returns per unit of risk. Avantor is currently generating about -0.23 per unit of risk. If you would invest 2,850 in Exelixis on August 28, 2024 and sell it today you would earn a total of 795.00 from holding Exelixis or generate 27.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exelixis vs. Avantor
Performance |
| Timeline |
| Exelixis |
| Avantor |
Exelixis and Avantor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exelixis and Avantor
The main advantage of trading using opposite Exelixis and Avantor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelixis position performs unexpectedly, Avantor 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 Avantor will offset losses from the drop in Avantor's long position.| Exelixis vs. Eliem Therapeutics | Exelixis vs. Scpharmaceuticals | Exelixis vs. Milestone Pharmaceuticals | Exelixis vs. Seres Therapeutics |
| Avantor vs. Ashland Global Holdings | Avantor vs. H B Fuller | Avantor vs. Element Solutions | Avantor vs. Balchem |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |