Correlation Between Exscientia and Invivyd

Can any of the company-specific risk be diversified away by investing in both Exscientia and Invivyd 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 Invivyd 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 Invivyd, you can compare the effects of market volatilities on Exscientia and Invivyd 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 Invivyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exscientia and Invivyd.

Diversification Opportunities for Exscientia and Invivyd

0.0

Correlation Coefficient

Exscientia  Invivyd

Pay attention - limited upside

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

Pair Corralation between Exscientia and Invivyd

If you would invest  46.00  in Invivyd on December 30, 2024 and sell it today you would earn a total of  14.00  from holding Invivyd or generate 30.43% 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.  Invivyd

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.

Invivyd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Invivyd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Invivyd exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exscientia and Invivyd

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

The idea behind Exscientia Ltd ADR and Invivyd 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.