Correlation Between Exagen and Prenetics Global
Can any of the company-specific risk be diversified away by investing in both Exagen and Prenetics Global 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 Prenetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Prenetics Global, you can compare the effects of market volatilities on Exagen and Prenetics Global 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 Prenetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Prenetics Global.
Diversification Opportunities for Exagen and Prenetics Global
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exagen and Prenetics is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Prenetics Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prenetics Global 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 Prenetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prenetics Global has no effect on the direction of Exagen i.e., Exagen and Prenetics Global go up and down completely randomly.
Pair Corralation between Exagen and Prenetics Global
Considering the 90-day investment horizon Exagen is expected to generate 7.59 times less return on investment than Prenetics Global. But when comparing it to its historical volatility, Exagen Inc is 9.96 times less risky than Prenetics Global. It trades about 0.05 of its potential returns per unit of risk. Prenetics Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,790 in Prenetics Global on August 28, 2024 and sell it today you would lose (2,339) from holding Prenetics Global or give up 83.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exagen Inc vs. Prenetics Global
Performance |
| Timeline |
| Exagen Inc |
| Prenetics Global |
Exagen and Prenetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and Prenetics Global
The main advantage of trading using opposite Exagen and Prenetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Prenetics Global 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 Prenetics Global will offset losses from the drop in Prenetics Global's long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| Prenetics Global vs. Neogen | Prenetics Global vs. Qiagen NV | Prenetics Global vs. Aclaris Therapeutics | Prenetics Global vs. Fonar |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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