Correlation Between Viatris and Exicure
Can any of the company-specific risk be diversified away by investing in both Viatris 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 Viatris and Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viatris and Exicure, you can compare the effects of market volatilities on Viatris 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 Viatris with a short position of Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viatris and Exicure.
Diversification Opportunities for Viatris and Exicure
Poor diversification
The 3 months correlation between Viatris and Exicure is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Viatris and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Viatris 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 Viatris 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 Viatris i.e., Viatris and Exicure go up and down completely randomly.
Pair Corralation between Viatris and Exicure
Given the investment horizon of 90 days Viatris is expected to generate 15.44 times less return on investment than Exicure. But when comparing it to its historical volatility, Viatris is 6.35 times less risky than Exicure. It trades about 0.03 of its potential returns per unit of risk. Exicure is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 367.00 in Exicure on September 3, 2024 and sell it today you would earn a total of 2,582 from holding Exicure or generate 703.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viatris vs. Exicure
Performance |
| Timeline |
| Viatris |
| Exicure |
Viatris and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viatris and Exicure
The main advantage of trading using opposite Viatris and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viatris 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.| Viatris vs. Catalent | Viatris vs. Bausch Health Companies | Viatris vs. Tilray Inc | Viatris vs. Takeda Pharmaceutical Co |
| Exicure vs. DiaMedica Therapeutics | Exicure vs. Lyra Therapeutics | Exicure vs. Centessa Pharmaceuticals PLC |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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