Correlation Between Volitionrx and Exagen
Can any of the company-specific risk be diversified away by investing in both Volitionrx 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 Volitionrx and Exagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volitionrx and Exagen Inc, you can compare the effects of market volatilities on Volitionrx 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 Volitionrx with a short position of Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volitionrx and Exagen.
Diversification Opportunities for Volitionrx and Exagen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Volitionrx and Exagen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Volitionrx and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and Volitionrx 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 Volitionrx 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 Volitionrx i.e., Volitionrx and Exagen go up and down completely randomly.
Pair Corralation between Volitionrx and Exagen
Given the investment horizon of 90 days Volitionrx is expected to generate 2.7 times less return on investment than Exagen. But when comparing it to its historical volatility, Volitionrx is 1.05 times less risky than Exagen. It trades about 0.13 of its potential returns per unit of risk. Exagen Inc is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 257.00 in Exagen Inc on September 2, 2024 and sell it today you would earn a total of 140.00 from holding Exagen Inc or generate 54.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Volitionrx vs. Exagen Inc
Performance |
| Timeline |
| Volitionrx |
| Exagen Inc |
Volitionrx and Exagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volitionrx and Exagen
The main advantage of trading using opposite Volitionrx and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volitionrx 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.| Volitionrx vs. Profound Medical Corp | Volitionrx vs. Si Bone | Volitionrx vs. Nevro Corp | Volitionrx vs. Orthopediatrics Corp |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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