Correlation Between Dominari Holdings and Exicure

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

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

Diversification Opportunities for Dominari Holdings and Exicure

-0.45

Correlation Coefficient

Dominari Holdings  Exicure

Very good diversification

The 3 months correlation between Dominari and Exicure is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dominari Holdings and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Dominari Holdings 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 Dominari Holdings are associated (or correlated) with Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Dominari Holdings i.e., Dominari Holdings and Exicure go up and down completely randomly.

Pair Corralation between Dominari Holdings and Exicure

Given the investment horizon of 90 days Dominari Holdings is expected to generate 128.8 times less return on investment than Exicure. But when comparing it to its historical volatility, Dominari Holdings is 5.49 times less risky than Exicure. It trades about 0.01 of its potential returns per unit of risk. Exicure is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  177.00  in Exicure on September 4, 2024 and sell it today you would earn a total of  2,053  from holding Exicure or generate 1159.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Dominari Holdings  vs.  Exicure

Dominari Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Exicure

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Exicure are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Exicure reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dominari Holdings and Exicure

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

The idea behind Dominari Holdings and Exicure 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.