Correlation Between Sana Biotechnology and Codexis
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and Codexis 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 Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and Codexis, you can compare the effects of market volatilities on Sana Biotechnology and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and Codexis.
Diversification Opportunities for Sana Biotechnology and Codexis
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sana and Codexis is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and Codexis go up and down completely randomly.
Pair Corralation between Sana Biotechnology and Codexis
Given the investment horizon of 90 days Sana Biotechnology is expected to under-perform the Codexis. In addition to that, Sana Biotechnology is 1.21 times more volatile than Codexis. It trades about -0.31 of its total potential returns per unit of risk. Codexis is currently generating about 0.4 per unit of volatility. If you would invest 319.00 in Codexis on August 30, 2024 and sell it today you would earn a total of 140.00 from holding Codexis or generate 43.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sana Biotechnology vs. Codexis
Performance |
| Timeline |
| Sana Biotechnology |
| Codexis |
Sana Biotechnology and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and Codexis
The main advantage of trading using opposite Sana Biotechnology and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
| Codexis vs. Verve Therapeutics | Codexis vs. Beam Therapeutics | Codexis vs. Caribou Biosciences | Codexis vs. Sana Biotechnology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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