Correlation Between Trinity Biotech and Exagen
Can any of the company-specific risk be diversified away by investing in both Trinity Biotech 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 Trinity Biotech and Exagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trinity Biotech plc and Exagen Inc, you can compare the effects of market volatilities on Trinity Biotech 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 Trinity Biotech with a short position of Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trinity Biotech and Exagen.
Diversification Opportunities for Trinity Biotech and Exagen
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trinity and Exagen is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Trinity Biotech plc and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Trinity Biotech 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 Trinity Biotech plc 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 Trinity Biotech i.e., Trinity Biotech and Exagen go up and down completely randomly.
Pair Corralation between Trinity Biotech and Exagen
Given the investment horizon of 90 days Trinity Biotech plc is expected to under-perform the Exagen. But the stock apears to be less risky and, when comparing its historical volatility, Trinity Biotech plc is 2.26 times less risky than Exagen. The stock trades about -0.74 of its potential returns per unit of risk. The Exagen Inc is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Exagen Inc on September 1, 2024 and sell it today you would earn a total of 154.00 from holding Exagen Inc or generate 63.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trinity Biotech plc vs. Exagen Inc
Performance |
| Timeline |
| Trinity Biotech plc |
| Exagen Inc |
Trinity Biotech and Exagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trinity Biotech and Exagen
The main advantage of trading using opposite Trinity Biotech and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trinity Biotech 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.| Trinity Biotech vs. Star Equity Holdings | Trinity Biotech vs. Standard Biotools | Trinity Biotech vs. Biodesix | Trinity Biotech vs. ENDRA Life Sciences |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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