Correlation Between Exagen and Star Equity
Can any of the company-specific risk be diversified away by investing in both Exagen and Star Equity 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 Star Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Star Equity Holdings, you can compare the effects of market volatilities on Exagen and Star Equity 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 Star Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Star Equity.
Diversification Opportunities for Exagen and Star Equity
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Exagen and Star is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity Holdings 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 Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of Exagen i.e., Exagen and Star Equity go up and down completely randomly.
Pair Corralation between Exagen and Star Equity
Considering the 90-day investment horizon Exagen Inc is expected to generate 1.87 times more return on investment than Star Equity. However, Exagen is 1.87 times more volatile than Star Equity Holdings. It trades about 0.13 of its potential returns per unit of risk. Star Equity Holdings is currently generating about 0.02 per unit of risk. If you would invest 197.00 in Exagen Inc on August 30, 2024 and sell it today you would earn a total of 187.00 from holding Exagen Inc or generate 94.92% 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. Star Equity Holdings
Performance |
| Timeline |
| Exagen Inc |
| Star Equity Holdings |
Exagen and Star Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and Star Equity
The main advantage of trading using opposite Exagen and Star Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Star Equity 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 Star Equity will offset losses from the drop in Star Equity's long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| Star Equity vs. Star Equity Holdings | Star Equity vs. XOMA Corp | Star Equity vs. Fundamental Global | Star Equity vs. Fortress Biotech Pref |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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