Correlation Between Sana Biotechnology and EnGene Holdings
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and EnGene Holdings 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 EnGene Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and enGene Holdings Common, you can compare the effects of market volatilities on Sana Biotechnology and EnGene Holdings 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 EnGene Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and EnGene Holdings.
Diversification Opportunities for Sana Biotechnology and EnGene Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sana and EnGene is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and enGene Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enGene Holdings Common 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 EnGene Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enGene Holdings Common has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and EnGene Holdings go up and down completely randomly.
Pair Corralation between Sana Biotechnology and EnGene Holdings
Given the investment horizon of 90 days Sana Biotechnology is expected to under-perform the EnGene Holdings. In addition to that, Sana Biotechnology is 1.05 times more volatile than enGene Holdings Common. It trades about -0.25 of its total potential returns per unit of risk. enGene Holdings Common is currently generating about 0.08 per unit of volatility. If you would invest 648.00 in enGene Holdings Common on August 26, 2024 and sell it today you would earn a total of 120.00 from holding enGene Holdings Common or generate 18.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sana Biotechnology vs. enGene Holdings Common
Performance |
Timeline |
Sana Biotechnology |
enGene Holdings Common |
Sana Biotechnology and EnGene Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sana Biotechnology and EnGene Holdings
The main advantage of trading using opposite Sana Biotechnology and EnGene Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, EnGene Holdings 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 EnGene Holdings will offset losses from the drop in EnGene Holdings' long position.Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
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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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