Correlation Between Exscientia and Zura Bio

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

Diversification Opportunities for Exscientia and Zura Bio

0.0

Correlation Coefficient

Exscientia  Zura Bio

Pay attention - limited upside

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

Pair Corralation between Exscientia and Zura Bio

If you would invest (100.00) in Exscientia Ltd ADR on December 26, 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.  Zura Bio Limited

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.

Zura Bio Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zura Bio Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Exscientia and Zura Bio

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

The idea behind Exscientia Ltd ADR and Zura Bio Limited 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.