Correlation Between Exagen and Enzo Biochem
Can any of the company-specific risk be diversified away by investing in both Exagen and Enzo Biochem 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 Enzo Biochem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Enzo Biochem, you can compare the effects of market volatilities on Exagen and Enzo Biochem 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 Enzo Biochem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Enzo Biochem.
Diversification Opportunities for Exagen and Enzo Biochem
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exagen and Enzo is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Enzo Biochem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enzo Biochem 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 Enzo Biochem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enzo Biochem has no effect on the direction of Exagen i.e., Exagen and Enzo Biochem go up and down completely randomly.
Pair Corralation between Exagen and Enzo Biochem
Considering the 90-day investment horizon Exagen Inc is expected to generate 3.39 times more return on investment than Enzo Biochem. However, Exagen is 3.39 times more volatile than Enzo Biochem. It trades about 0.13 of its potential returns per unit of risk. Enzo Biochem is currently generating about -0.07 per unit of risk. If you would invest 289.00 in Exagen Inc on August 28, 2024 and sell it today you would earn a total of 116.00 from holding Exagen Inc or generate 40.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exagen Inc vs. Enzo Biochem
Performance |
| Timeline |
| Exagen Inc |
| Enzo Biochem |
Exagen and Enzo Biochem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and Enzo Biochem
The main advantage of trading using opposite Exagen and Enzo Biochem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Enzo Biochem 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 Enzo Biochem will offset losses from the drop in Enzo Biochem's long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| Enzo Biochem vs. Fonar | Enzo Biochem vs. Burning Rock Biotech | Enzo Biochem vs. Sera Prognostics | Enzo Biochem vs. Psychemedics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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