Correlation Between Epigenomics and US Bancorp
Can any of the company-specific risk be diversified away by investing in both Epigenomics and US Bancorp 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 Epigenomics and US Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epigenomics AG and US Bancorp PERP, you can compare the effects of market volatilities on Epigenomics and US Bancorp 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 Epigenomics with a short position of US Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epigenomics and US Bancorp.
Diversification Opportunities for Epigenomics and US Bancorp
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Epigenomics and USB-PA is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Epigenomics AG and US Bancorp PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Bancorp PERP and Epigenomics 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 Epigenomics AG are associated (or correlated) with US Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Bancorp PERP has no effect on the direction of Epigenomics i.e., Epigenomics and US Bancorp go up and down completely randomly.
Pair Corralation between Epigenomics and US Bancorp
Assuming the 90 days horizon Epigenomics AG is expected to generate 77.04 times more return on investment than US Bancorp. However, Epigenomics is 77.04 times more volatile than US Bancorp PERP. It trades about 0.17 of its potential returns per unit of risk. US Bancorp PERP is currently generating about 0.11 per unit of risk. If you would invest 50.00 in Epigenomics AG on January 25, 2024 and sell it today you would earn a total of 0.00 from holding Epigenomics AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Epigenomics AG vs. US Bancorp PERP
Performance |
| Timeline |
| Epigenomics AG |
| US Bancorp PERP |
Epigenomics and US Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epigenomics and US Bancorp
The main advantage of trading using opposite Epigenomics and US Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epigenomics position performs unexpectedly, US Bancorp 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 US Bancorp will offset losses from the drop in US Bancorp's long position.| Epigenomics vs. BiodesixInc | Epigenomics vs. Aclaris Therapeutics | Epigenomics vs. Castle Biosciences | Epigenomics vs. Prenetics Global |
| US Bancorp vs. KeyCorp | US Bancorp vs. Regions Financial | US Bancorp vs. Citizens Financial Group | US Bancorp vs. US Bancorp |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |