Correlation Between Johnson Johnson and Exicure
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson 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 Johnson Johnson and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and Exicure, you can compare the effects of market volatilities on Johnson Johnson 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 Johnson Johnson with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Exicure.
Diversification Opportunities for Johnson Johnson and Exicure
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Johnson and Exicure is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Johnson Johnson 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 Johnson Johnson 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 Johnson Johnson i.e., Johnson Johnson and Exicure go up and down completely randomly.
Pair Corralation between Johnson Johnson and Exicure
Considering the 90-day investment horizon Johnson Johnson is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Johnson Johnson is 11.18 times less risky than Exicure. The stock trades about -0.01 of its potential returns per unit of risk. The Exicure is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 367.00 in Exicure on September 3, 2024 and sell it today you would earn a total of 2,582 from holding Exicure or generate 703.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Johnson vs. Exicure
Performance |
| Timeline |
| Johnson Johnson |
| Exicure |
Johnson Johnson and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Exicure
The main advantage of trading using opposite Johnson Johnson and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson 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.| Johnson Johnson vs. Merck Company | Johnson Johnson vs. Pfizer Inc | Johnson Johnson vs. Highway Holdings Limited | Johnson Johnson vs. QCR Holdings |
| Exicure vs. DiaMedica Therapeutics | Exicure vs. Lyra Therapeutics | Exicure vs. Centessa Pharmaceuticals PLC |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |