Correlation Between Tempus AI and EXACT Sciences
Can any of the company-specific risk be diversified away by investing in both Tempus AI and EXACT Sciences 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 Tempus AI and EXACT Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tempus AI Class and EXACT Sciences, you can compare the effects of market volatilities on Tempus AI and EXACT Sciences 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 Tempus AI with a short position of EXACT Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tempus AI and EXACT Sciences.
Diversification Opportunities for Tempus AI and EXACT Sciences
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tempus and EXACT is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tempus AI Class and EXACT Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXACT Sciences and Tempus AI 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 Tempus AI Class are associated (or correlated) with EXACT Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXACT Sciences has no effect on the direction of Tempus AI i.e., Tempus AI and EXACT Sciences go up and down completely randomly.
Pair Corralation between Tempus AI and EXACT Sciences
Considering the 90-day investment horizon Tempus AI Class is expected to under-perform the EXACT Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Tempus AI Class is 1.02 times less risky than EXACT Sciences. The stock trades about -0.15 of its potential returns per unit of risk. The EXACT Sciences is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 5,775 in EXACT Sciences on October 7, 2025 and sell it today you would earn a total of 4,398 from holding EXACT Sciences or generate 76.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tempus AI Class vs. EXACT Sciences
Performance |
| Timeline |
| Tempus AI Class |
| EXACT Sciences |
Tempus AI and EXACT Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tempus AI and EXACT Sciences
The main advantage of trading using opposite Tempus AI and EXACT Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tempus AI position performs unexpectedly, EXACT Sciences 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 EXACT Sciences will offset losses from the drop in EXACT Sciences' long position.| Tempus AI vs. Doximity | Tempus AI vs. Smith Nephew SNATS | Tempus AI vs. Fresenius Medical Care | Tempus AI vs. The Cooper Companies |
| EXACT Sciences vs. Guardant Health | EXACT Sciences vs. ICON PLC | EXACT Sciences vs. Viatris | EXACT Sciences vs. BridgeBio Pharma |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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