Correlation Between Universe Pharmaceuticals and Exicure
Can any of the company-specific risk be diversified away by investing in both Universe Pharmaceuticals 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 Universe Pharmaceuticals and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universe Pharmaceuticals and Exicure, you can compare the effects of market volatilities on Universe Pharmaceuticals 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 Universe Pharmaceuticals with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universe Pharmaceuticals and Exicure.
Diversification Opportunities for Universe Pharmaceuticals and Exicure
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Universe and Exicure is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Universe Pharmaceuticals and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Universe Pharmaceuticals 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 Universe Pharmaceuticals 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 Universe Pharmaceuticals i.e., Universe Pharmaceuticals and Exicure go up and down completely randomly.
Pair Corralation between Universe Pharmaceuticals and Exicure
Considering the 90-day investment horizon Universe Pharmaceuticals is expected to generate 2.27 times more return on investment than Exicure. However, Universe Pharmaceuticals is 2.27 times more volatile than Exicure. It trades about 0.03 of its potential returns per unit of risk. Exicure is currently generating about 0.05 per unit of risk. If you would invest 1,275 in Universe Pharmaceuticals on October 13, 2024 and sell it today you would lose (1,212) from holding Universe Pharmaceuticals or give up 95.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universe Pharmaceuticals vs. Exicure
Performance |
| Timeline |
| Universe Pharmaceuticals |
| Exicure |
Universe Pharmaceuticals and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universe Pharmaceuticals and Exicure
The main advantage of trading using opposite Universe Pharmaceuticals and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universe Pharmaceuticals 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.| Universe Pharmaceuticals vs. Ginkgo Bioworks Holdings | Universe Pharmaceuticals vs. CureVac NV | Universe Pharmaceuticals vs. Iovance Biotherapeutics | Universe Pharmaceuticals vs. Krystal Biotech |
| Exicure vs. Ikena Oncology | Exicure vs. HCW Biologics | Exicure vs. RenovoRx | Exicure vs. Tempest Therapeutics |
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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