Correlation Between Exicure and HCW Biologics
Can any of the company-specific risk be diversified away by investing in both Exicure and HCW Biologics 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 Exicure and HCW Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exicure and HCW Biologics, you can compare the effects of market volatilities on Exicure and HCW Biologics 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 Exicure with a short position of HCW Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exicure and HCW Biologics.
Diversification Opportunities for Exicure and HCW Biologics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exicure and HCW is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Exicure and HCW Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCW Biologics and Exicure 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 Exicure are associated (or correlated) with HCW Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCW Biologics has no effect on the direction of Exicure i.e., Exicure and HCW Biologics go up and down completely randomly.
Pair Corralation between Exicure and HCW Biologics
Given the investment horizon of 90 days Exicure is expected to generate 0.37 times more return on investment than HCW Biologics. However, Exicure is 2.67 times less risky than HCW Biologics. It trades about 0.45 of its potential returns per unit of risk. HCW Biologics is currently generating about 0.15 per unit of risk. If you would invest 233.00 in Exicure on August 25, 2024 and sell it today you would earn a total of 1,605 from holding Exicure or generate 688.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exicure vs. HCW Biologics
Performance |
| Timeline |
| Exicure |
| HCW Biologics |
Exicure and HCW Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exicure and HCW Biologics
The main advantage of trading using opposite Exicure and HCW Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exicure position performs unexpectedly, HCW Biologics 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 HCW Biologics will offset losses from the drop in HCW Biologics' long position.| Exicure vs. Ikena Oncology | Exicure vs. Eliem Therapeutics | Exicure vs. HCW Biologics | Exicure vs. RenovoRx |
| HCW Biologics vs. Anebulo Pharmaceuticals | HCW Biologics vs. Rezolute | HCW Biologics vs. Eliem Therapeutics | HCW Biologics vs. Molecular Partners AG |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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