Correlation Between IQVIA Holdings and Exagen

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

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

Diversification Opportunities for IQVIA Holdings and Exagen

-0.59

Correlation Coefficient

IQVIA Holdings  Exagen

Excellent diversification

The 3 months correlation between IQVIA and Exagen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding IQVIA Holdings and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and IQVIA 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 IQVIA 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 IQVIA Holdings i.e., IQVIA Holdings and Exagen go up and down completely randomly.

Pair Corralation between IQVIA Holdings and Exagen

Considering the 90-day investment horizon IQVIA Holdings is expected to generate 0.1 times more return on investment than Exagen. However, IQVIA Holdings is 9.84 times less risky than Exagen. It trades about -0.04 of its potential returns per unit of risk. Exagen Inc is currently generating about -0.06 per unit of risk. If you would invest  19,911  in IQVIA Holdings on October 22, 2024 and sell it today you would lose (175.00) from holding IQVIA Holdings or give up 0.88% of portfolio value over 90 days.

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

IQVIA Holdings  vs.  Exagen Inc

IQVIA Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IQVIA Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Exagen Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exagen Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Exagen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IQVIA Holdings and Exagen

The main advantage of trading using opposite IQVIA Holdings and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQVIA 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 IQVIA 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.