Correlation Between Exagen and Trinity Biotech
Can any of the company-specific risk be diversified away by investing in both Exagen and Trinity Biotech 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 Trinity Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and Trinity Biotech plc, you can compare the effects of market volatilities on Exagen and Trinity Biotech 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 Trinity Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and Trinity Biotech.
Diversification Opportunities for Exagen and Trinity Biotech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exagen and Trinity is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Trinity Biotech plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Biotech plc 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 Trinity Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Biotech plc has no effect on the direction of Exagen i.e., Exagen and Trinity Biotech go up and down completely randomly.
Pair Corralation between Exagen and Trinity Biotech
Considering the 90-day investment horizon Exagen Inc is expected to generate 0.77 times more return on investment than Trinity Biotech. However, Exagen Inc is 1.3 times less risky than Trinity Biotech. It trades about 0.04 of its potential returns per unit of risk. Trinity Biotech plc is currently generating about -0.03 per unit of risk. If you would invest 266.00 in Exagen Inc on September 3, 2024 and sell it today you would earn a total of 153.00 from holding Exagen Inc or generate 57.52% 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. Trinity Biotech plc
Performance |
| Timeline |
| Exagen Inc |
| Trinity Biotech plc |
Exagen and Trinity Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and Trinity Biotech
The main advantage of trading using opposite Exagen and Trinity Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, Trinity Biotech 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 Trinity Biotech will offset losses from the drop in Trinity Biotech's long position.| Exagen vs. Fonar | Exagen vs. Burning Rock Biotech | Exagen vs. Sera Prognostics | Exagen vs. Castle Biosciences |
| Trinity Biotech vs. Star Equity Holdings | Trinity Biotech vs. Standard Biotools | Trinity Biotech vs. Biodesix | Trinity Biotech vs. ENDRA Life Sciences |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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