Correlation Between Exscientia and Elevation Oncology

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

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

Diversification Opportunities for Exscientia and Elevation Oncology

0.0

Correlation Coefficient

Exscientia  Elevation Oncology

Pay attention - limited upside

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

Pair Corralation between Exscientia and Elevation Oncology

If you would invest (100.00) in Exscientia Ltd ADR on December 2, 2024 and sell it today you would earn a total of  100.00  from holding Exscientia Ltd ADR or generate -100.0% return on investment over 90 days.

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

Exscientia Ltd ADR  vs.  Elevation Oncology

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.

Elevation Oncology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elevation Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Elevation Oncology is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Exscientia and Elevation Oncology

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

The idea behind Exscientia Ltd ADR and Elevation Oncology 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.