Correlation Between Takeda Pharmaceutical and Exagen
Can any of the company-specific risk be diversified away by investing in both Takeda Pharmaceutical 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 Takeda Pharmaceutical and Exagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takeda Pharmaceutical Co and Exagen Inc, you can compare the effects of market volatilities on Takeda Pharmaceutical 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 Takeda Pharmaceutical with a short position of Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takeda Pharmaceutical and Exagen.
Diversification Opportunities for Takeda Pharmaceutical and Exagen
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Takeda and Exagen is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Takeda Pharmaceutical Co and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Takeda Pharmaceutical 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 Takeda Pharmaceutical Co 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 Takeda Pharmaceutical i.e., Takeda Pharmaceutical and Exagen go up and down completely randomly.
Pair Corralation between Takeda Pharmaceutical and Exagen
Considering the 90-day investment horizon Takeda Pharmaceutical Co is expected to under-perform the Exagen. But the stock apears to be less risky and, when comparing its historical volatility, Takeda Pharmaceutical Co is 5.33 times less risky than Exagen. The stock trades about -0.1 of its potential returns per unit of risk. The Exagen Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 296.00 in Exagen Inc on September 3, 2024 and sell it today you would earn a total of 101.00 from holding Exagen Inc or generate 34.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Takeda Pharmaceutical Co vs. Exagen Inc
Performance |
| Timeline |
| Takeda Pharmaceutical |
| Exagen Inc |
Takeda Pharmaceutical and Exagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takeda Pharmaceutical and Exagen
The main advantage of trading using opposite Takeda Pharmaceutical and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takeda Pharmaceutical 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.| Takeda Pharmaceutical vs. Viatris | Takeda Pharmaceutical vs. Elanco Animal Health | Takeda Pharmaceutical vs. Zoetis Inc | Takeda Pharmaceutical vs. Emergent Biosolutions |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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