Correlation Between Sera Prognostics and Exagen
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics and Exagen 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 Sera Prognostics and Exagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Exagen Inc, you can compare the effects of market volatilities on Sera Prognostics and Exagen 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 Sera Prognostics with a short position of Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Exagen.
Diversification Opportunities for Sera Prognostics and Exagen
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sera and Exagen is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Sera Prognostics 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 Sera Prognostics are associated (or correlated) with Exagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exagen Inc has no effect on the direction of Sera Prognostics i.e., Sera Prognostics and Exagen go up and down completely randomly.
Pair Corralation between Sera Prognostics and Exagen
Given the investment horizon of 90 days Sera Prognostics is expected to under-perform the Exagen. But the stock apears to be less risky and, when comparing its historical volatility, Sera Prognostics is 1.05 times less risky than Exagen. The stock trades about -0.03 of its potential returns per unit of risk. The Exagen Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 194.00 in Exagen Inc on August 24, 2024 and sell it today you would earn a total of 198.00 from holding Exagen Inc or generate 102.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sera Prognostics vs. Exagen Inc
Performance |
| Timeline |
| Sera Prognostics |
| Exagen Inc |
Sera Prognostics and Exagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sera Prognostics and Exagen
The main advantage of trading using opposite Sera Prognostics and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics position performs unexpectedly, Exagen 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 Exagen will offset losses from the drop in Exagen's long position.| Sera Prognostics vs. Fonar | Sera Prognostics vs. Burning Rock Biotech | Sera Prognostics vs. Exagen Inc | Sera Prognostics vs. Sotera Health Co |
| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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