Correlation Between Genetron Holdings and Exagen

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

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

Diversification Opportunities for Genetron Holdings and Exagen

0.0

Correlation Coefficient

Genetron Holdings  Exagen

Pay attention - limited upside

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

Pair Corralation between Genetron Holdings and Exagen

If you would invest  397.00  in Exagen Inc on November 28, 2024 and sell it today you would lose (53.50) from holding Exagen Inc or give up 13.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Genetron Holdings  vs.  Exagen Inc

Genetron Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genetron Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Genetron Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Exagen Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Exagen Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Exagen may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Genetron Holdings and Exagen

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

The idea behind Genetron Holdings and Exagen Inc 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.