Correlation Between Liquidia Technologies and Exelixis
Can any of the company-specific risk be diversified away by investing in both Liquidia Technologies and Exelixis 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 Liquidia Technologies and Exelixis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liquidia Technologies and Exelixis, you can compare the effects of market volatilities on Liquidia Technologies and Exelixis 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 Liquidia Technologies with a short position of Exelixis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liquidia Technologies and Exelixis.
Diversification Opportunities for Liquidia Technologies and Exelixis
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liquidia and Exelixis is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Liquidia Technologies and Exelixis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exelixis and Liquidia Technologies 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 Liquidia Technologies are associated (or correlated) with Exelixis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exelixis has no effect on the direction of Liquidia Technologies i.e., Liquidia Technologies and Exelixis go up and down completely randomly.
Pair Corralation between Liquidia Technologies and Exelixis
Given the investment horizon of 90 days Liquidia Technologies is expected to generate 0.94 times more return on investment than Exelixis. However, Liquidia Technologies is 1.06 times less risky than Exelixis. It trades about 0.43 of its potential returns per unit of risk. Exelixis is currently generating about -0.02 per unit of risk. If you would invest 1,246 in Liquidia Technologies on November 9, 2024 and sell it today you would earn a total of 350.00 from holding Liquidia Technologies or generate 28.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liquidia Technologies vs. Exelixis
Performance |
| Timeline |
| Liquidia Technologies |
| Exelixis |
Liquidia Technologies and Exelixis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liquidia Technologies and Exelixis
The main advantage of trading using opposite Liquidia Technologies and Exelixis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liquidia Technologies position performs unexpectedly, Exelixis 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 Exelixis will offset losses from the drop in Exelixis' long position.| Liquidia Technologies vs. Biomarin Pharmaceutical | Liquidia Technologies vs. Vaxcyte | Liquidia Technologies vs. Legend Biotech Corp | Liquidia Technologies vs. Bio Techne Corp |
| Exelixis vs. TG Therapeutics | Exelixis vs. Viking Therapeutics | Exelixis vs. Madrigal Pharmaceuticals | Exelixis vs. BioXcel Therapeutics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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