Correlation Between Equillium and EXACT Sciences

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

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

Diversification Opportunities for Equillium and EXACT Sciences

-0.77

Correlation Coefficient

Equillium  EXACT Sciences

Pay attention - limited upside

The 3 months correlation between Equillium and EXACT is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and EXACT Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXACT Sciences and Equillium 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 Equillium 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 Equillium i.e., Equillium and EXACT Sciences go up and down completely randomly.

Pair Corralation between Equillium and EXACT Sciences

Allowing for the 90-day total investment horizon Equillium is expected to under-perform the EXACT Sciences. In addition to that, Equillium is 1.7 times more volatile than EXACT Sciences. It trades about -0.15 of its total potential returns per unit of risk. EXACT Sciences is currently generating about 0.27 per unit of volatility. If you would invest  5,389  in EXACT Sciences on September 6, 2025 and sell it today you would earn a total of  4,724  from holding EXACT Sciences or generate 87.66% return on investment over 90 days.

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

Equillium  vs.  EXACT Sciences

Equillium

Risk-Adjusted Performance

Weakest

Over the last 90 days Equillium has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

EXACT Sciences

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EXACT Sciences are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, EXACT Sciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Equillium and EXACT Sciences

The main advantage of trading using opposite Equillium and EXACT Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium 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 Equillium 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .