Correlation Between ONTX Old and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both ONTX Old 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 ONTX Old and Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONTX Old and Sana Biotechnology, you can compare the effects of market volatilities on ONTX Old 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 ONTX Old with a short position of Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONTX Old and Sana Biotechnology.
Diversification Opportunities for ONTX Old and Sana Biotechnology
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ONTX and Sana is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ONTX Old and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology and ONTX Old 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 ONTX Old 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 ONTX Old i.e., ONTX Old and Sana Biotechnology go up and down completely randomly.
Pair Corralation between ONTX Old and Sana Biotechnology
If you would invest 165.00 in Sana Biotechnology on November 2, 2024 and sell it today you would earn a total of 184.00 from holding Sana Biotechnology or generate 111.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
ONTX Old vs. Sana Biotechnology
Performance |
| Timeline |
| ONTX Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sana Biotechnology |
ONTX Old and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONTX Old and Sana Biotechnology
The main advantage of trading using opposite ONTX Old and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONTX Old 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.| ONTX Old vs. Jaguar Animal Health | ONTX Old vs. Ibio Inc | ONTX Old vs. GeoVax Labs | ONTX Old vs. Ocugen Inc |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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