Correlation Between EXACT Sciences and Tattooed Chef

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

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

Diversification Opportunities for EXACT Sciences and Tattooed Chef

0.05

Correlation Coefficient

EXACT Sciences  Tattooed Chef

Significant diversification

The 3 months correlation between EXACT and Tattooed is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding EXACT Sciences and Tattooed Chef in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tattooed Chef 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 Tattooed Chef. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tattooed Chef has no effect on the direction of EXACT Sciences i.e., EXACT Sciences and Tattooed Chef go up and down completely randomly.

Pair Corralation between EXACT Sciences and Tattooed Chef

Given the investment horizon of 90 days EXACT Sciences is expected to generate 84.0 times less return on investment than Tattooed Chef. But when comparing it to its historical volatility, EXACT Sciences is 219.88 times less risky than Tattooed Chef. It trades about 0.67 of its potential returns per unit of risk. Tattooed Chef is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Tattooed Chef on July 26, 2025 and sell it today you would lose (0.01) from holding Tattooed Chef or give up 100.0% of portfolio value over 90 days.

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

EXACT Sciences  vs.  Tattooed Chef

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.

Tattooed Chef

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tattooed Chef are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Tattooed Chef reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EXACT Sciences and Tattooed Chef

The main advantage of trading using opposite EXACT Sciences and Tattooed Chef positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXACT Sciences position performs unexpectedly, Tattooed Chef 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 Tattooed Chef will offset losses from the drop in Tattooed Chef's long position.

The idea behind EXACT Sciences and Tattooed Chef 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.