Correlation Between Hepion Pharmaceuticals and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both Hepion Pharmaceuticals 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 Hepion Pharmaceuticals and Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hepion Pharmaceuticals and Sana Biotechnology, you can compare the effects of market volatilities on Hepion Pharmaceuticals 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 Hepion Pharmaceuticals with a short position of Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hepion Pharmaceuticals and Sana Biotechnology.
Diversification Opportunities for Hepion Pharmaceuticals and Sana Biotechnology
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hepion and Sana is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hepion Pharmaceuticals and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology and Hepion Pharmaceuticals 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 Hepion Pharmaceuticals 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 Hepion Pharmaceuticals i.e., Hepion Pharmaceuticals and Sana Biotechnology go up and down completely randomly.
Pair Corralation between Hepion Pharmaceuticals and Sana Biotechnology
Given the investment horizon of 90 days Hepion Pharmaceuticals is expected to generate 1.17 times more return on investment than Sana Biotechnology. However, Hepion Pharmaceuticals is 1.17 times more volatile than Sana Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Sana Biotechnology is currently generating about -0.18 per unit of risk. If you would invest 65.00 in Hepion Pharmaceuticals on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Hepion Pharmaceuticals or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hepion Pharmaceuticals vs. Sana Biotechnology
Performance |
| Timeline |
| Hepion Pharmaceuticals |
| Sana Biotechnology |
Hepion Pharmaceuticals and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hepion Pharmaceuticals and Sana Biotechnology
The main advantage of trading using opposite Hepion Pharmaceuticals and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hepion Pharmaceuticals 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.| Hepion Pharmaceuticals vs. Enveric Biosciences | Hepion Pharmaceuticals vs. Elevation Oncology | Hepion Pharmaceuticals vs. Ocean Biomedical | Hepion Pharmaceuticals vs. Zura Bio Limited |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |