Correlation Between Eyenovia and Exicure

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

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

Diversification Opportunities for Eyenovia and Exicure

0.44

Correlation Coefficient

Eyenovia  Exicure

Very weak diversification

The 3 months correlation between Eyenovia and Exicure is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eyenovia and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure and Eyenovia 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 Eyenovia are associated (or correlated) with Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Eyenovia i.e., Eyenovia and Exicure go up and down completely randomly.

Pair Corralation between Eyenovia and Exicure

Given the investment horizon of 90 days Eyenovia is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Eyenovia is 1.11 times less risky than Exicure. The stock trades about -0.19 of its potential returns per unit of risk. The Exicure is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,954  in Exicure on December 22, 2024 and sell it today you would lose (549.00) from holding Exicure or give up 28.1% of portfolio value over 90 days.

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

Eyenovia  vs.  Exicure

Eyenovia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eyenovia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Exicure

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exicure has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Exicure may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Eyenovia and Exicure

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

The idea behind Eyenovia and Exicure 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.