Correlation Between Crispr Therapeutics and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both Crispr Therapeutics and Sana Biotechnology 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 Crispr Therapeutics and Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crispr Therapeutics AG and Sana Biotechnology, you can compare the effects of market volatilities on Crispr Therapeutics and Sana Biotechnology 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 Crispr Therapeutics with a short position of Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crispr Therapeutics and Sana Biotechnology.
Diversification Opportunities for Crispr Therapeutics and Sana Biotechnology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crispr and Sana is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Crispr Therapeutics AG and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology and Crispr Therapeutics 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 Crispr Therapeutics AG are associated (or correlated) with Sana Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sana Biotechnology has no effect on the direction of Crispr Therapeutics i.e., Crispr Therapeutics and Sana Biotechnology go up and down completely randomly.
Pair Corralation between Crispr Therapeutics and Sana Biotechnology
Given the investment horizon of 90 days Crispr Therapeutics AG is expected to generate 0.66 times more return on investment than Sana Biotechnology. However, Crispr Therapeutics AG is 1.52 times less risky than Sana Biotechnology. It trades about -0.03 of its potential returns per unit of risk. Sana Biotechnology is currently generating about -0.19 per unit of risk. If you would invest 5,484 in Crispr Therapeutics AG on August 24, 2024 and sell it today you would lose (855.00) from holding Crispr Therapeutics AG or give up 15.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crispr Therapeutics AG vs. Sana Biotechnology
Performance |
| Timeline |
| Crispr Therapeutics |
| Sana Biotechnology |
Crispr Therapeutics and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crispr Therapeutics and Sana Biotechnology
The main advantage of trading using opposite Crispr Therapeutics and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crispr Therapeutics position performs unexpectedly, Sana Biotechnology 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 Sana Biotechnology will offset losses from the drop in Sana Biotechnology's long position.| Crispr Therapeutics vs. Beam Therapeutics | Crispr Therapeutics vs. Editas Medicine | Crispr Therapeutics vs. Caribou Biosciences | Crispr Therapeutics vs. Verve Therapeutics |
| Sana Biotechnology vs. ZyVersa Therapeutics | Sana Biotechnology vs. Sonnet Biotherapeutics Holdings | Sana Biotechnology vs. Zura Bio Limited | Sana Biotechnology vs. Phio Pharmaceuticals Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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