Correlation Between SAB Biotherapeutics and Exicure
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics 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 SAB Biotherapeutics and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Exicure, you can compare the effects of market volatilities on SAB Biotherapeutics 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 SAB Biotherapeutics with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Exicure.
Diversification Opportunities for SAB Biotherapeutics and Exicure
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAB and Exicure is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and SAB Biotherapeutics 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 SAB Biotherapeutics 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 SAB Biotherapeutics i.e., SAB Biotherapeutics and Exicure go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Exicure
Given the investment horizon of 90 days SAB Biotherapeutics is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, SAB Biotherapeutics is 1.46 times less risky than Exicure. The stock trades about 0.0 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 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Exicure
Performance |
| Timeline |
| SAB Biotherapeutics |
| Exicure |
SAB Biotherapeutics and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Exicure
The main advantage of trading using opposite SAB Biotherapeutics and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics 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.| SAB Biotherapeutics vs. Processa Pharmaceuticals | SAB Biotherapeutics vs. Third Harmonic Bio | SAB Biotherapeutics vs. Cingulate Warrants | SAB Biotherapeutics vs. Anebulo Pharmaceuticals |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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