Correlation Between Trustcash Holdings and Exicure
Can any of the company-specific risk be diversified away by investing in both Trustcash Holdings 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 Trustcash Holdings and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trustcash Holdings and Exicure, you can compare the effects of market volatilities on Trustcash Holdings 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 Trustcash Holdings with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trustcash Holdings and Exicure.
Diversification Opportunities for Trustcash Holdings and Exicure
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trustcash and Exicure is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Trustcash Holdings and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Trustcash Holdings 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 Trustcash Holdings 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 Trustcash Holdings i.e., Trustcash Holdings and Exicure go up and down completely randomly.
Pair Corralation between Trustcash Holdings and Exicure
Given the investment horizon of 90 days Trustcash Holdings is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Trustcash Holdings is 2.15 times less risky than Exicure. The stock trades about -0.07 of its potential returns per unit of risk. The Exicure is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Exicure on August 29, 2024 and sell it today you would earn a total of 2,499 from holding Exicure or generate 925.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Trustcash Holdings vs. Exicure
Performance |
| Timeline |
| Trustcash Holdings |
| Exicure |
Trustcash Holdings and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trustcash Holdings and Exicure
The main advantage of trading using opposite Trustcash Holdings and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trustcash Holdings 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.| Trustcash Holdings vs. Remote Dynamics | Trustcash Holdings vs. Wellstar International | Trustcash Holdings vs. Encounter Technologi | Trustcash Holdings vs. Health Sciences Gr |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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