Correlation Between Histogen and Exicure
Can any of the company-specific risk be diversified away by investing in both Histogen and Exicure 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 Histogen and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Exicure, you can compare the effects of market volatilities on Histogen and Exicure 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 Histogen with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Exicure.
Diversification Opportunities for Histogen and Exicure
Pay attention - limited upside
The 3 months correlation between Histogen and Exicure is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Histogen 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 Histogen are associated (or correlated) with Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Histogen i.e., Histogen and Exicure go up and down completely randomly.
Pair Corralation between Histogen and Exicure
Given the investment horizon of 90 days Histogen is expected to generate 9.71 times less return on investment than Exicure. In addition to that, Histogen is 1.09 times more volatile than Exicure. It trades about 0.01 of its total potential returns per unit of risk. Exicure is currently generating about 0.08 per unit of volatility. If you would invest 435.00 in Exicure on August 29, 2024 and sell it today you would earn a total of 2,764 from holding Exicure or generate 635.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Histogen vs. Exicure
Performance |
| Timeline |
| Histogen |
| Exicure |
Histogen and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and Exicure
The main advantage of trading using opposite Histogen and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
| Exicure vs. Ikena Oncology | Exicure vs. Eliem Therapeutics | Exicure vs. HCW Biologics | Exicure vs. RenovoRx |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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