Correlation Between Sana Biotechnology and Intellia Therapeutics
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and Intellia Therapeutics 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 Intellia Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and Intellia Therapeutics, you can compare the effects of market volatilities on Sana Biotechnology and Intellia Therapeutics 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 Intellia Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and Intellia Therapeutics.
Diversification Opportunities for Sana Biotechnology and Intellia Therapeutics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sana and Intellia is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and Intellia Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellia Therapeutics 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 Intellia Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellia Therapeutics has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and Intellia Therapeutics go up and down completely randomly.
Pair Corralation between Sana Biotechnology and Intellia Therapeutics
Given the investment horizon of 90 days Sana Biotechnology is expected to generate 2.46 times more return on investment than Intellia Therapeutics. However, Sana Biotechnology is 2.46 times more volatile than Intellia Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Intellia Therapeutics is currently generating about -0.05 per unit of risk. If you would invest 349.00 in Sana Biotechnology on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Sana Biotechnology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sana Biotechnology vs. Intellia Therapeutics
Performance |
| Timeline |
| Sana Biotechnology |
| Intellia Therapeutics |
Sana Biotechnology and Intellia Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and Intellia Therapeutics
The main advantage of trading using opposite Sana Biotechnology and Intellia Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, Intellia Therapeutics 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 Intellia Therapeutics will offset losses from the drop in Intellia Therapeutics' long position.| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
| Intellia Therapeutics vs. Editas Medicine | Intellia Therapeutics vs. Caribou Biosciences | Intellia Therapeutics vs. Crispr Therapeutics AG | Intellia Therapeutics vs. Verve 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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