Correlation Between Exelixis and NeuroMetrix
Can any of the company-specific risk be diversified away by investing in both Exelixis and NeuroMetrix 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 NeuroMetrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelixis and NeuroMetrix, you can compare the effects of market volatilities on Exelixis and NeuroMetrix 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 NeuroMetrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelixis and NeuroMetrix.
Diversification Opportunities for Exelixis and NeuroMetrix
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exelixis and NeuroMetrix is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Exelixis and NeuroMetrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeuroMetrix 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 NeuroMetrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeuroMetrix has no effect on the direction of Exelixis i.e., Exelixis and NeuroMetrix go up and down completely randomly.
Pair Corralation between Exelixis and NeuroMetrix
Given the investment horizon of 90 days Exelixis is expected to generate 1.59 times more return on investment than NeuroMetrix. However, Exelixis is 1.59 times more volatile than NeuroMetrix. It trades about 0.23 of its potential returns per unit of risk. NeuroMetrix is currently generating about 0.12 per unit of risk. If you would invest 3,348 in Exelixis on October 22, 2024 and sell it today you would earn a total of 272.00 from holding Exelixis or generate 8.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Exelixis vs. NeuroMetrix
Performance |
Timeline |
Exelixis |
NeuroMetrix |
Exelixis and NeuroMetrix Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exelixis and NeuroMetrix
The main advantage of trading using opposite Exelixis and NeuroMetrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelixis position performs unexpectedly, NeuroMetrix 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 NeuroMetrix will offset losses from the drop in NeuroMetrix's long position.Exelixis vs. TG Therapeutics | Exelixis vs. Viking Therapeutics | Exelixis vs. Madrigal Pharmaceuticals | Exelixis vs. BioXcel Therapeutics |
NeuroMetrix vs. Heart Test Laboratories | NeuroMetrix vs. ReShape Lifesciences | NeuroMetrix vs. Inspira Technologies Oxy | NeuroMetrix vs. Bone Biologics Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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