Correlation Between Intellia Therapeutics and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Intellia Therapeutics and Stoke Therapeutics 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 Stoke Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellia Therapeutics and Stoke Therapeutics, you can compare the effects of market volatilities on Intellia Therapeutics and Stoke Therapeutics 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 Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellia Therapeutics and Stoke Therapeutics.
Diversification Opportunities for Intellia Therapeutics and Stoke Therapeutics
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intellia and Stoke is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Intellia Therapeutics and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics 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 Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of Intellia Therapeutics i.e., Intellia Therapeutics and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Intellia Therapeutics and Stoke Therapeutics
Given the investment horizon of 90 days Intellia Therapeutics is expected to generate 1.14 times more return on investment than Stoke Therapeutics. However, Intellia Therapeutics is 1.14 times more volatile than Stoke Therapeutics. It trades about 0.08 of its potential returns per unit of risk. Stoke Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 1,481 in Intellia Therapeutics on September 2, 2024 and sell it today you would earn a total of 81.00 from holding Intellia Therapeutics or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellia Therapeutics vs. Stoke Therapeutics
Performance |
| Timeline |
| Intellia Therapeutics |
| Stoke Therapeutics |
Intellia Therapeutics and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellia Therapeutics and Stoke Therapeutics
The main advantage of trading using opposite Intellia Therapeutics and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellia Therapeutics position performs unexpectedly, Stoke Therapeutics 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 Stoke Therapeutics will offset losses from the drop in Stoke Therapeutics' long position.| Intellia Therapeutics vs. Editas Medicine | Intellia Therapeutics vs. Caribou Biosciences | Intellia Therapeutics vs. Crispr Therapeutics AG | Intellia Therapeutics vs. Verve Therapeutics |
| Stoke Therapeutics vs. Tff Pharmaceuticals | Stoke Therapeutics vs. Eliem Therapeutics | Stoke Therapeutics vs. Inhibrx | Stoke Therapeutics vs. Enliven Therapeutics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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