Correlation Between Intellia Therapeutics and Moderna
Can any of the company-specific risk be diversified away by investing in both Intellia Therapeutics and Moderna 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 Intellia Therapeutics and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellia Therapeutics and Moderna, you can compare the effects of market volatilities on Intellia Therapeutics and Moderna 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 Intellia Therapeutics with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellia Therapeutics and Moderna.
Diversification Opportunities for Intellia Therapeutics and Moderna
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intellia and Moderna is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Intellia Therapeutics and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Intellia 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 Intellia Therapeutics are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Intellia Therapeutics i.e., Intellia Therapeutics and Moderna go up and down completely randomly.
Pair Corralation between Intellia Therapeutics and Moderna
Given the investment horizon of 90 days Intellia Therapeutics is expected to under-perform the Moderna. In addition to that, Intellia Therapeutics is 1.57 times more volatile than Moderna. It trades about -0.24 of its total potential returns per unit of risk. Moderna is currently generating about -0.37 per unit of volatility. If you would invest 5,339 in Moderna on August 24, 2024 and sell it today you would lose (1,514) from holding Moderna or give up 28.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellia Therapeutics vs. Moderna
Performance |
| Timeline |
| Intellia Therapeutics |
| Moderna |
Intellia Therapeutics and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellia Therapeutics and Moderna
The main advantage of trading using opposite Intellia Therapeutics and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellia Therapeutics position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| Intellia Therapeutics vs. Editas Medicine | Intellia Therapeutics vs. Caribou Biosciences | Intellia Therapeutics vs. Crispr Therapeutics AG | Intellia Therapeutics vs. Verve Therapeutics |
| Moderna vs. ZyVersa Therapeutics | Moderna vs. Sonnet Biotherapeutics Holdings | Moderna vs. Zura Bio Limited | Moderna 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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