Correlation Between Abeona Therapeutics and Exscientia

Can any of the company-specific risk be diversified away by investing in both Abeona Therapeutics and Exscientia 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 Abeona Therapeutics and Exscientia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Abeona Therapeutics and Exscientia Ltd ADR, you can compare the effects of market volatilities on Abeona Therapeutics and Exscientia 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 Abeona Therapeutics with a short position of Exscientia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abeona Therapeutics and Exscientia.

Diversification Opportunities for Abeona Therapeutics and Exscientia

0.0

Correlation Coefficient

Abeona Therapeutics  Exscientia

Pay attention - limited upside

The 3 months correlation between Abeona and Exscientia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Abeona Therapeutics and Exscientia Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exscientia ADR and Abeona Therapeutics 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 Abeona Therapeutics are associated (or correlated) with Exscientia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exscientia ADR has no effect on the direction of Abeona Therapeutics i.e., Abeona Therapeutics and Exscientia go up and down completely randomly.

Pair Corralation between Abeona Therapeutics and Exscientia

If you would invest  229.00  in Abeona Therapeutics on November 19, 2024 and sell it today you would earn a total of  373.00  from holding Abeona Therapeutics or generate 162.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Abeona Therapeutics  vs.  Exscientia Ltd ADR

Abeona Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Abeona Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Abeona Therapeutics is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Exscientia ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exscientia Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Exscientia is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Abeona Therapeutics and Exscientia

The main advantage of trading using opposite Abeona Therapeutics and Exscientia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abeona Therapeutics position performs unexpectedly, Exscientia 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 Exscientia will offset losses from the drop in Exscientia's long position.

The idea behind Abeona Therapeutics and Exscientia Ltd ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.