Correlation Between Exscientia and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both Exscientia 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 Exscientia and Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exscientia Ltd ADR and Sana Biotechnology, you can compare the effects of market volatilities on Exscientia 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 Exscientia with a short position of Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exscientia and Sana Biotechnology.
Diversification Opportunities for Exscientia and Sana Biotechnology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Exscientia and Sana is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Exscientia Ltd ADR and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology and Exscientia 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 Exscientia Ltd ADR 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 Exscientia i.e., Exscientia and Sana Biotechnology go up and down completely randomly.
Pair Corralation between Exscientia and Sana Biotechnology
Given the investment horizon of 90 days Exscientia Ltd ADR is expected to generate 0.8 times more return on investment than Sana Biotechnology. However, Exscientia Ltd ADR is 1.26 times less risky than Sana Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Sana Biotechnology is currently generating about -0.16 per unit of risk. If you would invest 486.00 in Exscientia Ltd ADR on September 1, 2024 and sell it today you would lose (2.00) from holding Exscientia Ltd ADR or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Exscientia Ltd ADR vs. Sana Biotechnology
Performance |
| Timeline |
| Exscientia ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sana Biotechnology |
Exscientia and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exscientia and Sana Biotechnology
The main advantage of trading using opposite Exscientia and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exscientia 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.| Exscientia vs. Zura Bio Limited | Exscientia vs. Elevation Oncology | Exscientia vs. Recursion Pharmaceuticals | Exscientia vs. Atea Pharmaceuticals |
| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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