Correlation Between Gossamer Bio and Exscientia
Can any of the company-specific risk be diversified away by investing in both Gossamer Bio and Exscientia 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 Gossamer Bio and Exscientia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gossamer Bio and Exscientia Ltd ADR, you can compare the effects of market volatilities on Gossamer Bio and Exscientia 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 Gossamer Bio with a short position of Exscientia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gossamer Bio and Exscientia.
Diversification Opportunities for Gossamer Bio and Exscientia
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gossamer and Exscientia is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gossamer Bio and Exscientia Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exscientia ADR and Gossamer Bio 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 Gossamer Bio are associated (or correlated) with Exscientia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exscientia ADR has no effect on the direction of Gossamer Bio i.e., Gossamer Bio and Exscientia go up and down completely randomly.
Pair Corralation between Gossamer Bio and Exscientia
Given the investment horizon of 90 days Gossamer Bio is expected to generate 1.24 times more return on investment than Exscientia. However, Gossamer Bio is 1.24 times more volatile than Exscientia Ltd ADR. It trades about -0.02 of its potential returns per unit of risk. Exscientia Ltd ADR is currently generating about -0.04 per unit of risk. If you would invest 95.00 in Gossamer Bio on September 26, 2024 and sell it today you would lose (11.00) from holding Gossamer Bio or give up 11.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.08% |
| Values | Daily Returns |
Gossamer Bio vs. Exscientia Ltd ADR
Performance |
| Timeline |
| Gossamer Bio |
| Exscientia ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gossamer Bio and Exscientia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gossamer Bio and Exscientia
The main advantage of trading using opposite Gossamer Bio and Exscientia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gossamer Bio position performs unexpectedly, Exscientia 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 Exscientia will offset losses from the drop in Exscientia's long position.| Gossamer Bio vs. Fate Therapeutics | Gossamer Bio vs. Caribou Biosciences | Gossamer Bio vs. Karyopharm Therapeutics | Gossamer Bio vs. Hookipa Pharma |
| Exscientia vs. Zura Bio Limited | Exscientia vs. Elevation Oncology | Exscientia vs. Recursion Pharmaceuticals | Exscientia vs. Atea Pharmaceuticals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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