Correlation Between Exicure and Opthea
Can any of the company-specific risk be diversified away by investing in both Exicure and Opthea 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 Opthea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exicure and Opthea, you can compare the effects of market volatilities on Exicure and Opthea 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 Opthea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exicure and Opthea.
Diversification Opportunities for Exicure and Opthea
Very good diversification
The 3 months correlation between Exicure and Opthea is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Exicure and Opthea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opthea 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 Opthea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opthea has no effect on the direction of Exicure i.e., Exicure and Opthea go up and down completely randomly.
Pair Corralation between Exicure and Opthea
Given the investment horizon of 90 days Exicure is expected to generate 6.79 times more return on investment than Opthea. However, Exicure is 6.79 times more volatile than Opthea. It trades about 0.45 of its potential returns per unit of risk. Opthea is currently generating about -0.12 per unit of risk. If you would invest 296.00 in Exicure on September 4, 2024 and sell it today you would earn a total of 1,934 from holding Exicure or generate 653.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exicure vs. Opthea
Performance |
| Timeline |
| Exicure |
| Opthea |
Exicure and Opthea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exicure and Opthea
The main advantage of trading using opposite Exicure and Opthea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exicure position performs unexpectedly, Opthea 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 Opthea will offset losses from the drop in Opthea's long position.| Exicure vs. Candel Therapeutics | Exicure vs. Cingulate Warrants | Exicure vs. Unicycive Therapeutics | Exicure vs. Cardio Diagnostics Holdings |
| Opthea vs. Molecular Partners AG | Opthea vs. MediciNova | Opthea vs. Anebulo Pharmaceuticals | Opthea vs. Champions Oncology |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |