Correlation Between Seer and Exelixis

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

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

Diversification Opportunities for Seer and Exelixis

-0.58

Correlation Coefficient

Seer  Exelixis

Excellent diversification

The 3 months correlation between Seer and Exelixis is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Seer Inc and Exelixis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exelixis and Seer 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 Seer Inc are associated (or correlated) with Exelixis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exelixis has no effect on the direction of Seer i.e., Seer and Exelixis go up and down completely randomly.

Pair Corralation between Seer and Exelixis

Given the investment horizon of 90 days Seer Inc is expected to under-perform the Exelixis. But the stock apears to be less risky and, when comparing its historical volatility, Seer Inc is 1.18 times less risky than Exelixis. The stock trades about -0.13 of its potential returns per unit of risk. The Exelixis is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,348  in Exelixis on December 21, 2024 and sell it today you would earn a total of  370.00  from holding Exelixis or generate 11.05% return on investment over 90 days.

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

Seer Inc  vs.  Exelixis

Seer Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seer Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Exelixis

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Exelixis are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Exelixis disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Seer and Exelixis

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

The idea behind Seer Inc and Exelixis 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.