Correlation Between Exagen and Longeveron LLC

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

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

Diversification Opportunities for Exagen and Longeveron LLC

-0.51

Correlation Coefficient

Exagen  Longeveron LLC

Excellent diversification

The 3 months correlation between Exagen and Longeveron is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and Longeveron LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longeveron LLC and Exagen 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 Exagen Inc are associated (or correlated) with Longeveron LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longeveron LLC has no effect on the direction of Exagen i.e., Exagen and Longeveron LLC go up and down completely randomly.

Pair Corralation between Exagen and Longeveron LLC

Considering the 90-day investment horizon Exagen Inc is expected to generate 0.49 times more return on investment than Longeveron LLC. However, Exagen Inc is 2.05 times less risky than Longeveron LLC. It trades about 0.06 of its potential returns per unit of risk. Longeveron LLC is currently generating about -0.02 per unit of risk. If you would invest  197.00  in Exagen Inc on October 5, 2024 and sell it today you would earn a total of  161.00  from holding Exagen Inc or generate 81.73% return on investment over 90 days.

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

Exagen Inc  vs.  Longeveron LLC

Exagen Inc

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Exagen Inc are ranked lower than 6 (%) 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.

Longeveron LLC

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Longeveron LLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Longeveron LLC may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Exagen and Longeveron LLC

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

The idea behind Exagen Inc and Longeveron LLC 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.