Correlation Between EXACT Sciences and Ab Municipal
Can any of the company-specific risk be diversified away by investing in both EXACT Sciences and Ab Municipal 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 Ab Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXACT Sciences and Ab Municipal Income, you can compare the effects of market volatilities on EXACT Sciences and Ab Municipal 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 Ab Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXACT Sciences and Ab Municipal.
Diversification Opportunities for EXACT Sciences and Ab Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EXACT and AAZYX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EXACT Sciences and Ab Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal Me 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 Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Me has no effect on the direction of EXACT Sciences i.e., EXACT Sciences and Ab Municipal go up and down completely randomly.
Pair Corralation between EXACT Sciences and Ab Municipal
If you would invest 6,233 in EXACT Sciences on January 24, 2024 and sell it today you would earn a total of 120.00 from holding EXACT Sciences or generate 1.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.34% |
Values | Daily Returns |
EXACT Sciences vs. Ab Municipal Income
Performance |
Timeline |
EXACT Sciences |
Ab Municipal Me |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EXACT Sciences and Ab Municipal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EXACT Sciences and Ab Municipal
The main advantage of trading using opposite EXACT Sciences and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXACT Sciences position performs unexpectedly, Ab Municipal 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 Ab Municipal will offset losses from the drop in Ab Municipal's long position.EXACT Sciences vs. Natera Inc | EXACT Sciences vs. Caredx Inc | EXACT Sciences vs. Illumina | EXACT Sciences vs. Twist Bioscience Corp |
Ab Municipal vs. Goldman Sachs Financial | Ab Municipal vs. Angel Oak Financial | Ab Municipal vs. Royce Global Financial | Ab Municipal vs. Transamerica Financial Life |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |