Correlation Between Sana Biotechnology and Blueprint Medicines
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and Blueprint Medicines 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 Blueprint Medicines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and Blueprint Medicines Corp, you can compare the effects of market volatilities on Sana Biotechnology and Blueprint Medicines 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 Blueprint Medicines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and Blueprint Medicines.
Diversification Opportunities for Sana Biotechnology and Blueprint Medicines
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sana and Blueprint is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and Blueprint Medicines Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blueprint Medicines Corp 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 Blueprint Medicines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blueprint Medicines Corp has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and Blueprint Medicines go up and down completely randomly.
Pair Corralation between Sana Biotechnology and Blueprint Medicines
Given the investment horizon of 90 days Sana Biotechnology is expected to generate 5.54 times less return on investment than Blueprint Medicines. In addition to that, Sana Biotechnology is 1.74 times more volatile than Blueprint Medicines Corp. It trades about 0.01 of its total potential returns per unit of risk. Blueprint Medicines Corp is currently generating about 0.06 per unit of volatility. If you would invest 4,685 in Blueprint Medicines Corp on August 28, 2024 and sell it today you would earn a total of 4,702 from holding Blueprint Medicines Corp or generate 100.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sana Biotechnology vs. Blueprint Medicines Corp
Performance |
| Timeline |
| Sana Biotechnology |
| Blueprint Medicines Corp |
Sana Biotechnology and Blueprint Medicines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and Blueprint Medicines
The main advantage of trading using opposite Sana Biotechnology and Blueprint Medicines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, Blueprint Medicines 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 Blueprint Medicines will offset losses from the drop in Blueprint Medicines' long position.| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
| Blueprint Medicines vs. Eliem Therapeutics | Blueprint Medicines vs. HCW Biologics | Blueprint Medicines vs. Scpharmaceuticals | Blueprint Medicines vs. Milestone 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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