Correlation Between Exagen and Biodesix
Can any of the company-specific risk be diversified away by investing in both Exagen and Biodesix 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 Exagen and Biodesix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Biodesix, you can compare the effects of market volatilities on Exagen and Biodesix 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 Exagen with a short position of Biodesix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Biodesix.
Diversification Opportunities for Exagen and Biodesix
Good diversification
The 3 months correlation between Exagen and Biodesix is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Biodesix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biodesix and Exagen 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 Exagen Inc are associated (or correlated) with Biodesix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biodesix has no effect on the direction of Exagen i.e., Exagen and Biodesix go up and down completely randomly.
Pair Corralation between Exagen and Biodesix
Considering the 90-day investment horizon Exagen Inc is expected to generate 1.09 times more return on investment than Biodesix. However, Exagen is 1.09 times more volatile than Biodesix. It trades about 0.36 of its potential returns per unit of risk. Biodesix is currently generating about -0.14 per unit of risk. If you would invest 261.00 in Exagen Inc on August 27, 2024 and sell it today you would earn a total of 149.00 from holding Exagen Inc or generate 57.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exagen Inc vs. Biodesix
Performance |
| Timeline |
| Exagen Inc |
| Biodesix |
Exagen and Biodesix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and Biodesix
The main advantage of trading using opposite Exagen and Biodesix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Biodesix 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 Biodesix will offset losses from the drop in Biodesix's long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| Biodesix vs. Aclaris Therapeutics | Biodesix vs. Castle Biosciences | Biodesix vs. Prenetics Global | Biodesix vs. DarioHealth Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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