Correlation Between EXACT Sciences and Twist Bioscience
Can any of the company-specific risk be diversified away by investing in both EXACT Sciences and Twist Bioscience 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 EXACT Sciences and Twist Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXACT Sciences and Twist Bioscience Corp, you can compare the effects of market volatilities on EXACT Sciences and Twist Bioscience 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 EXACT Sciences with a short position of Twist Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXACT Sciences and Twist Bioscience.
Diversification Opportunities for EXACT Sciences and Twist Bioscience
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EXACT and Twist is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding EXACT Sciences and Twist Bioscience Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twist Bioscience Corp and EXACT Sciences 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 EXACT Sciences are associated (or correlated) with Twist Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twist Bioscience Corp has no effect on the direction of EXACT Sciences i.e., EXACT Sciences and Twist Bioscience go up and down completely randomly.
Pair Corralation between EXACT Sciences and Twist Bioscience
Given the investment horizon of 90 days EXACT Sciences is expected to under-perform the Twist Bioscience. But the stock apears to be less risky and, when comparing its historical volatility, EXACT Sciences is 1.5 times less risky than Twist Bioscience. The stock trades about -0.1 of its potential returns per unit of risk. The Twist Bioscience Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,930 in Twist Bioscience Corp on May 30, 2025 and sell it today you would lose (271.00) from holding Twist Bioscience Corp or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EXACT Sciences vs. Twist Bioscience Corp
Performance |
| Timeline |
| EXACT Sciences |
| Twist Bioscience Corp |
EXACT Sciences and Twist Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXACT Sciences and Twist Bioscience
The main advantage of trading using opposite EXACT Sciences and Twist Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXACT Sciences position performs unexpectedly, Twist Bioscience 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 Twist Bioscience will offset losses from the drop in Twist Bioscience's long position.| EXACT Sciences vs. Guardant Health | EXACT Sciences vs. Illumina | EXACT Sciences vs. Twist Bioscience Corp | EXACT Sciences vs. Natera Inc |
| Twist Bioscience vs. CareDx Inc | Twist Bioscience vs. Charles River Laboratories | Twist Bioscience vs. Guardant Health | Twist Bioscience vs. Illumina |
Check out your portfolio center.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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