Correlation Between Exelixis and Halozyme Therapeutics
Can any of the company-specific risk be diversified away by investing in both Exelixis and Halozyme 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 Exelixis and Halozyme Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelixis and Halozyme Therapeutics, you can compare the effects of market volatilities on Exelixis and Halozyme 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 Exelixis with a short position of Halozyme Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelixis and Halozyme Therapeutics.
Diversification Opportunities for Exelixis and Halozyme Therapeutics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exelixis and Halozyme is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Exelixis and Halozyme Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halozyme Therapeutics 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 Halozyme Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halozyme Therapeutics has no effect on the direction of Exelixis i.e., Exelixis and Halozyme Therapeutics go up and down completely randomly.
Pair Corralation between Exelixis and Halozyme Therapeutics
Given the investment horizon of 90 days Exelixis is expected to under-perform the Halozyme Therapeutics. In addition to that, Exelixis is 2.85 times more volatile than Halozyme Therapeutics. It trades about -0.02 of its total potential returns per unit of risk. Halozyme Therapeutics is currently generating about 0.34 per unit of volatility. If you would invest 5,376 in Halozyme Therapeutics on November 9, 2024 and sell it today you would earn a total of 418.00 from holding Halozyme Therapeutics or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exelixis vs. Halozyme Therapeutics
Performance |
| Timeline |
| Exelixis |
| Halozyme Therapeutics |
Exelixis and Halozyme Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exelixis and Halozyme Therapeutics
The main advantage of trading using opposite Exelixis and Halozyme Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelixis position performs unexpectedly, Halozyme 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 Halozyme Therapeutics will offset losses from the drop in Halozyme Therapeutics' long position.| Exelixis vs. TG Therapeutics | Exelixis vs. Viking Therapeutics | Exelixis vs. Madrigal Pharmaceuticals | Exelixis vs. BioXcel Therapeutics |
| Halozyme Therapeutics vs. Agios Pharm | Halozyme Therapeutics vs. Insmed Inc | Halozyme Therapeutics vs. Ultragenyx | Halozyme Therapeutics vs. Biomarin Pharmaceutical |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |