Correlation Between Exagen and BioAffinity Technologies
Can any of the company-specific risk be diversified away by investing in both Exagen and BioAffinity Technologies 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 BioAffinity Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exagen Inc and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Exagen and BioAffinity Technologies 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 BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exagen and BioAffinity Technologies.
Diversification Opportunities for Exagen and BioAffinity Technologies
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exagen and BioAffinity is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Exagen Inc and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies 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 BioAffinity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAffinity Technologies has no effect on the direction of Exagen i.e., Exagen and BioAffinity Technologies go up and down completely randomly.
Pair Corralation between Exagen and BioAffinity Technologies
Considering the 90-day investment horizon Exagen Inc is expected to generate 0.16 times more return on investment than BioAffinity Technologies. However, Exagen Inc is 6.43 times less risky than BioAffinity Technologies. It trades about 0.21 of its potential returns per unit of risk. bioAffinity Technologies Warrant is currently generating about -0.05 per unit of risk. If you would invest 681.00 in Exagen Inc on May 27, 2025 and sell it today you would earn a total of 304.00 from holding Exagen Inc or generate 44.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.38% |
| Values | Daily Returns |
Exagen Inc vs. bioAffinity Technologies Warra
Performance |
| Timeline |
| Exagen Inc |
| BioAffinity Technologies |
Exagen and BioAffinity Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exagen and BioAffinity Technologies
The main advantage of trading using opposite Exagen and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exagen position performs unexpectedly, BioAffinity Technologies 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 BioAffinity Technologies will offset losses from the drop in BioAffinity Technologies' long position.The idea behind Exagen Inc and bioAffinity Technologies Warrant 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.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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