Correlation Between Sana Biotechnology and Atara Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and Atara Biotherapeutics 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 Sana Biotechnology and Atara Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and Atara Biotherapeutics, you can compare the effects of market volatilities on Sana Biotechnology and Atara Biotherapeutics 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 Sana Biotechnology with a short position of Atara Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and Atara Biotherapeutics.
Diversification Opportunities for Sana Biotechnology and Atara Biotherapeutics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sana and Atara is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and Atara Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atara Biotherapeutics and Sana Biotechnology 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 Sana Biotechnology are associated (or correlated) with Atara Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atara Biotherapeutics has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and Atara Biotherapeutics go up and down completely randomly.
Pair Corralation between Sana Biotechnology and Atara Biotherapeutics
Given the investment horizon of 90 days Sana Biotechnology is expected to generate 1.1 times more return on investment than Atara Biotherapeutics. However, Sana Biotechnology is 1.1 times more volatile than Atara Biotherapeutics. It trades about 0.03 of its potential returns per unit of risk. Atara Biotherapeutics is currently generating about -0.01 per unit of risk. If you would invest 428.00 in Sana Biotechnology on November 2, 2024 and sell it today you would lose (79.00) from holding Sana Biotechnology or give up 18.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sana Biotechnology vs. Atara Biotherapeutics
Performance |
| Timeline |
| Sana Biotechnology |
| Atara Biotherapeutics |
Sana Biotechnology and Atara Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and Atara Biotherapeutics
The main advantage of trading using opposite Sana Biotechnology and Atara Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, Atara Biotherapeutics 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 Atara Biotherapeutics will offset losses from the drop in Atara Biotherapeutics' long position.| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
| Atara Biotherapeutics vs. Fate Therapeutics | Atara Biotherapeutics vs. Sana Biotechnology | Atara Biotherapeutics vs. Caribou Biosciences | Atara Biotherapeutics vs. Arcus Biosciences |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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