Correlation Between Exagen and Interpace Biosciences
Can any of the company-specific risk be diversified away by investing in both Exagen and Interpace Biosciences 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 Interpace Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Interpace Biosciences, you can compare the effects of market volatilities on Exagen and Interpace Biosciences 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 Interpace Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Interpace Biosciences.
Diversification Opportunities for Exagen and Interpace Biosciences
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exagen and Interpace is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Interpace Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interpace Biosciences 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 Interpace Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interpace Biosciences has no effect on the direction of Exagen i.e., Exagen and Interpace Biosciences go up and down completely randomly.
Pair Corralation between Exagen and Interpace Biosciences
If you would invest 243.00 in Exagen Inc on September 1, 2024 and sell it today you would earn a total of 154.00 from holding Exagen Inc or generate 63.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Exagen Inc vs. Interpace Biosciences
Performance |
| Timeline |
| Exagen Inc |
| Interpace Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exagen and Interpace Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and Interpace Biosciences
The main advantage of trading using opposite Exagen and Interpace Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Interpace Biosciences 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 Interpace Biosciences will offset losses from the drop in Interpace Biosciences' long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| Interpace Biosciences vs. Intelligent Bio Solutions | Interpace Biosciences vs. bioAffinity Technologies, | Interpace Biosciences vs. Fonar | Interpace Biosciences vs. Burning Rock Biotech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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