Correlation Between ISpecimen and Exagen

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

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

Diversification Opportunities for ISpecimen and Exagen

0.21

Correlation Coefficient

ISpecimen  Exagen

Modest diversification

The 3 months correlation between ISpecimen and Exagen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc and ISpecimen 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 iSpecimen 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 ISpecimen i.e., ISpecimen and Exagen go up and down completely randomly.

Pair Corralation between ISpecimen and Exagen

Given the investment horizon of 90 days iSpecimen is expected to under-perform the Exagen. But the stock apears to be less risky and, when comparing its historical volatility, iSpecimen is 1.3 times less risky than Exagen. The stock trades about -0.2 of its potential returns per unit of risk. The Exagen Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  428.00  in Exagen Inc on December 29, 2024 and sell it today you would lose (44.00) from holding Exagen Inc or give up 10.28% of portfolio value over 90 days.

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

iSpecimen  vs.  Exagen Inc

iSpecimen

Risk-Adjusted Performance

Very Weak

Over the last 90 days iSpecimen 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 rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 April 2025.

Pair Trading with ISpecimen and Exagen

The main advantage of trading using opposite ISpecimen and Exagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISpecimen 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 iSpecimen 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 Commodity Directory module to find actively traded commodities issued by global exchanges.