Correlation Between Exelixis and CalciMedica, Common

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

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

Diversification Opportunities for Exelixis and CalciMedica, Common

-0.78

Correlation Coefficient

Exelixis  CalciMedica, Common

Pay attention - limited upside

The 3 months correlation between Exelixis and CalciMedica, is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Exelixis and CalciMedica, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CalciMedica, Common Stock and Exelixis 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 Exelixis are associated (or correlated) with CalciMedica, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CalciMedica, Common Stock has no effect on the direction of Exelixis i.e., Exelixis and CalciMedica, Common go up and down completely randomly.

Pair Corralation between Exelixis and CalciMedica, Common

Given the investment horizon of 90 days Exelixis is expected to generate 0.45 times more return on investment than CalciMedica, Common. However, Exelixis is 2.22 times less risky than CalciMedica, Common. It trades about 0.18 of its potential returns per unit of risk. CalciMedica, Common Stock is currently generating about -0.03 per unit of risk. If you would invest  2,631  in Exelixis on October 6, 2024 and sell it today you would earn a total of  766.00  from holding Exelixis or generate 29.11% return on investment over 90 days.

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

Exelixis  vs.  CalciMedica, Common Stock

Exelixis

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exelixis are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Exelixis disclosed solid returns over the last few months and may actually be approaching a breakup point.

CalciMedica, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CalciMedica, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Exelixis and CalciMedica, Common

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

The idea behind Exelixis and CalciMedica, Common Stock 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.