Correlation Between Senti Biosciences and Exicure
Can any of the company-specific risk be diversified away by investing in both Senti Biosciences 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 Senti Biosciences and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senti Biosciences and Exicure, you can compare the effects of market volatilities on Senti Biosciences 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 Senti Biosciences with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senti Biosciences and Exicure.
Diversification Opportunities for Senti Biosciences and Exicure
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senti and Exicure is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Senti Biosciences and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Senti Biosciences 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 Senti Biosciences 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 Senti Biosciences i.e., Senti Biosciences and Exicure go up and down completely randomly.
Pair Corralation between Senti Biosciences and Exicure
Given the investment horizon of 90 days Senti Biosciences is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Senti Biosciences is 1.49 times less risky than Exicure. The stock trades about -0.03 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senti Biosciences vs. Exicure
Performance |
| Timeline |
| Senti Biosciences |
| Exicure |
Senti Biosciences and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senti Biosciences and Exicure
The main advantage of trading using opposite Senti Biosciences and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senti Biosciences 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.| Senti Biosciences vs. Cadrenal Therapeutics, Common | Senti Biosciences vs. Foghorn Therapeutics | Senti Biosciences vs. Quoin Pharmaceuticals Ltd | Senti Biosciences vs. SAB Biotherapeutics |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |