Correlation Between Sana Biotechnology and Repligen
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and Repligen 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 Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and Repligen, you can compare the effects of market volatilities on Sana Biotechnology and Repligen 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 Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and Repligen.
Diversification Opportunities for Sana Biotechnology and Repligen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sana and Repligen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and Repligen go up and down completely randomly.
Pair Corralation between Sana Biotechnology and Repligen
Given the investment horizon of 90 days Sana Biotechnology is expected to under-perform the Repligen. In addition to that, Sana Biotechnology is 1.34 times more volatile than Repligen. It trades about -0.17 of its total potential returns per unit of risk. Repligen is currently generating about 0.02 per unit of volatility. If you would invest 15,035 in Repligen on August 30, 2024 and sell it today you would lose (36.00) from holding Repligen or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sana Biotechnology vs. Repligen
Performance |
| Timeline |
| Sana Biotechnology |
| Repligen |
Sana Biotechnology and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and Repligen
The main advantage of trading using opposite Sana Biotechnology and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen'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 |
| Repligen vs. Verve Therapeutics | Repligen vs. Beam Therapeutics | Repligen vs. Caribou Biosciences | Repligen 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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