Correlation Between Sana Biotechnology and FIXX Old
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and FIXX Old 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 FIXX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and FIXX Old, you can compare the effects of market volatilities on Sana Biotechnology and FIXX Old 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 FIXX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and FIXX Old.
Diversification Opportunities for Sana Biotechnology and FIXX Old
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sana and FIXX is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and FIXX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIXX Old 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 FIXX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIXX Old has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and FIXX Old go up and down completely randomly.
Pair Corralation between Sana Biotechnology and FIXX Old
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 |
Sana Biotechnology vs. FIXX Old
Performance |
| Timeline |
| Sana Biotechnology |
| FIXX Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sana Biotechnology and FIXX Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and FIXX Old
The main advantage of trading using opposite Sana Biotechnology and FIXX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, FIXX Old 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 FIXX Old will offset losses from the drop in FIXX Old's long position.| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
| FIXX Old vs. Passage Bio | FIXX Old vs. Stoke Therapeutics | FIXX Old vs. Adaptimmune Therapeutics Plc | FIXX Old vs. Black Diamond Therapeutics |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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