Correlation Between Opthea and Exicure
Can any of the company-specific risk be diversified away by investing in both Opthea 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 Opthea and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opthea and Exicure, you can compare the effects of market volatilities on Opthea 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 Opthea with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opthea and Exicure.
Diversification Opportunities for Opthea and Exicure
Very good diversification
The 3 months correlation between Opthea and Exicure is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Opthea and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Opthea 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 Opthea 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 Opthea i.e., Opthea and Exicure go up and down completely randomly.
Pair Corralation between Opthea and Exicure
Considering the 90-day investment horizon Opthea is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Opthea is 6.79 times less risky than Exicure. The stock trades about -0.12 of its potential returns per unit of risk. The Exicure is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 296.00 in Exicure on September 4, 2024 and sell it today you would earn a total of 1,934 from holding Exicure or generate 653.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opthea vs. Exicure
Performance |
| Timeline |
| Opthea |
| Exicure |
Opthea and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opthea and Exicure
The main advantage of trading using opposite Opthea and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opthea 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.| Opthea vs. Molecular Partners AG | Opthea vs. MediciNova | Opthea vs. Anebulo Pharmaceuticals | Opthea vs. Champions Oncology |
| Exicure vs. Candel Therapeutics | Exicure vs. Cingulate Warrants | Exicure vs. Unicycive Therapeutics | Exicure vs. Cardio Diagnostics Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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