Correlation Between Sangamo Therapeutics and Actinium Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Sangamo Therapeutics and Actinium Pharmaceuticals 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 Sangamo Therapeutics and Actinium Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangamo Therapeutics and Actinium Pharmaceuticals, you can compare the effects of market volatilities on Sangamo Therapeutics and Actinium Pharmaceuticals 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 Sangamo Therapeutics with a short position of Actinium Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangamo Therapeutics and Actinium Pharmaceuticals.
Diversification Opportunities for Sangamo Therapeutics and Actinium Pharmaceuticals
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sangamo and Actinium is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sangamo Therapeutics and Actinium Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinium Pharmaceuticals and Sangamo Therapeutics 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 Sangamo Therapeutics are associated (or correlated) with Actinium Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinium Pharmaceuticals has no effect on the direction of Sangamo Therapeutics i.e., Sangamo Therapeutics and Actinium Pharmaceuticals go up and down completely randomly.
Pair Corralation between Sangamo Therapeutics and Actinium Pharmaceuticals
Given the investment horizon of 90 days Sangamo Therapeutics is expected to generate 1.47 times more return on investment than Actinium Pharmaceuticals. However, Sangamo Therapeutics is 1.47 times more volatile than Actinium Pharmaceuticals. It trades about 0.09 of its potential returns per unit of risk. Actinium Pharmaceuticals is currently generating about -0.04 per unit of risk. If you would invest 63.00 in Sangamo Therapeutics on August 26, 2024 and sell it today you would earn a total of 125.00 from holding Sangamo Therapeutics or generate 198.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangamo Therapeutics vs. Actinium Pharmaceuticals
Performance |
| Timeline |
| Sangamo Therapeutics |
| Actinium Pharmaceuticals |
Sangamo Therapeutics and Actinium Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangamo Therapeutics and Actinium Pharmaceuticals
The main advantage of trading using opposite Sangamo Therapeutics and Actinium Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangamo Therapeutics position performs unexpectedly, Actinium Pharmaceuticals 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 Actinium Pharmaceuticals will offset losses from the drop in Actinium Pharmaceuticals' long position.| Sangamo Therapeutics vs. Editas Medicine | Sangamo Therapeutics vs. Intellia Therapeutics | Sangamo Therapeutics vs. Bluebird bio | Sangamo Therapeutics vs. Alnylam Pharmaceuticals |
| Actinium Pharmaceuticals vs. Mink Therapeutics | Actinium Pharmaceuticals vs. Affimed NV | Actinium Pharmaceuticals vs. Adaptimmune Therapeutics Plc | Actinium Pharmaceuticals vs. Sangamo 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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