Correlation Between Exagen and ISpecimen
Can any of the company-specific risk be diversified away by investing in both Exagen and ISpecimen 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 ISpecimen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and iSpecimen, you can compare the effects of market volatilities on Exagen and ISpecimen 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 ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and ISpecimen.
Diversification Opportunities for Exagen and ISpecimen
Average diversification
The 3 months correlation between Exagen and ISpecimen is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Exagen i.e., Exagen and ISpecimen go up and down completely randomly.
Pair Corralation between Exagen and ISpecimen
Considering the 90-day investment horizon Exagen Inc is expected to generate 1.2 times more return on investment than ISpecimen. However, Exagen is 1.2 times more volatile than iSpecimen. It trades about 0.27 of its potential returns per unit of risk. iSpecimen is currently generating about -0.11 per unit of risk. If you would invest 284.00 in Exagen Inc on August 25, 2024 and sell it today you would earn a total of 126.00 from holding Exagen Inc or generate 44.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exagen Inc vs. iSpecimen
Performance |
| Timeline |
| Exagen Inc |
| iSpecimen |
Exagen and ISpecimen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and ISpecimen
The main advantage of trading using opposite Exagen and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, ISpecimen 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 ISpecimen will offset losses from the drop in ISpecimen's long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| ISpecimen vs. Fonar | ISpecimen vs. Castle Biosciences | ISpecimen vs. Exagen Inc | ISpecimen vs. OncoCyte 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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