Correlation Between EXACT Sciences and Viatris
Can any of the company-specific risk be diversified away by investing in both EXACT Sciences and Viatris 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 Viatris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXACT Sciences and Viatris, you can compare the effects of market volatilities on EXACT Sciences and Viatris 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 Viatris. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXACT Sciences and Viatris.
Diversification Opportunities for EXACT Sciences and Viatris
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EXACT and Viatris is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding EXACT Sciences and Viatris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viatris 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 Viatris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viatris has no effect on the direction of EXACT Sciences i.e., EXACT Sciences and Viatris go up and down completely randomly.
Pair Corralation between EXACT Sciences and Viatris
Given the investment horizon of 90 days EXACT Sciences is expected to generate 1.91 times more return on investment than Viatris. However, EXACT Sciences is 1.91 times more volatile than Viatris. It trades about 0.32 of its potential returns per unit of risk. Viatris is currently generating about 0.02 per unit of risk. If you would invest 4,801 in EXACT Sciences on August 31, 2025 and sell it today you would earn a total of 5,344 from holding EXACT Sciences or generate 111.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EXACT Sciences vs. Viatris
Performance |
| Timeline |
| EXACT Sciences |
| Viatris |
EXACT Sciences and Viatris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXACT Sciences and Viatris
The main advantage of trading using opposite EXACT Sciences and Viatris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXACT Sciences position performs unexpectedly, Viatris 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 Viatris will offset losses from the drop in Viatris' long position.| EXACT Sciences vs. Natcore Technology | EXACT Sciences vs. Pintec Technology Holdings | EXACT Sciences vs. Asure Software | EXACT Sciences vs. Amkor Technology |
| Viatris vs. Dynasty Fine Wines | Viatris vs. Surf Air Mobility | Viatris vs. HF Sinclair Corp | Viatris vs. Delta Air Lines |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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