Correlation Between Booking Holdings and EXACT Sciences

Can any of the company-specific risk be diversified away by investing in both Booking Holdings 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 Booking Holdings and EXACT Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Booking Holdings and EXACT Sciences, you can compare the effects of market volatilities on Booking Holdings 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 Booking Holdings with a short position of EXACT Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booking Holdings and EXACT Sciences.

Diversification Opportunities for Booking Holdings and EXACT Sciences

-0.74

Correlation Coefficient

Booking Holdings  EXACT Sciences

Pay attention - limited upside

The 3 months correlation between Booking and EXACT is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Booking Holdings and EXACT Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXACT Sciences and Booking Holdings 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 Booking Holdings 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 Booking Holdings i.e., Booking Holdings and EXACT Sciences go up and down completely randomly.

Pair Corralation between Booking Holdings and EXACT Sciences

Given the investment horizon of 90 days Booking Holdings is expected to generate 0.52 times more return on investment than EXACT Sciences. However, Booking Holdings is 1.93 times less risky than EXACT Sciences. It trades about 0.07 of its potential returns per unit of risk. EXACT Sciences is currently generating about 0.02 per unit of risk. If you would invest  307,487  in Booking Holdings on August 2, 2025 and sell it today you would earn a total of  200,534  from holding Booking Holdings or generate 65.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Booking Holdings  vs.  EXACT Sciences

Booking Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Booking Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

EXACT Sciences

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EXACT Sciences are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, EXACT Sciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Booking Holdings and EXACT Sciences

The main advantage of trading using opposite Booking Holdings and EXACT Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booking Holdings 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.

The idea behind Booking Holdings and EXACT Sciences 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.