Correlation Between Sangamo Therapeutics and Hookipa Pharma
Can any of the company-specific risk be diversified away by investing in both Sangamo Therapeutics and Hookipa Pharma 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 Hookipa Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangamo Therapeutics and Hookipa Pharma, you can compare the effects of market volatilities on Sangamo Therapeutics and Hookipa Pharma 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 Hookipa Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangamo Therapeutics and Hookipa Pharma.
Diversification Opportunities for Sangamo Therapeutics and Hookipa Pharma
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sangamo and Hookipa is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sangamo Therapeutics and Hookipa Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hookipa Pharma 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 Hookipa Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hookipa Pharma has no effect on the direction of Sangamo Therapeutics i.e., Sangamo Therapeutics and Hookipa Pharma go up and down completely randomly.
Pair Corralation between Sangamo Therapeutics and Hookipa Pharma
Given the investment horizon of 90 days Sangamo Therapeutics is expected to generate 1.77 times more return on investment than Hookipa Pharma. However, Sangamo Therapeutics is 1.77 times more volatile than Hookipa Pharma. It trades about 0.14 of its potential returns per unit of risk. Hookipa Pharma is currently generating about -0.37 per unit of risk. If you would invest 188.00 in Sangamo Therapeutics on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Sangamo Therapeutics or generate 20.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangamo Therapeutics vs. Hookipa Pharma
Performance |
| Timeline |
| Sangamo Therapeutics |
| Hookipa Pharma |
Sangamo Therapeutics and Hookipa Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangamo Therapeutics and Hookipa Pharma
The main advantage of trading using opposite Sangamo Therapeutics and Hookipa Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangamo Therapeutics position performs unexpectedly, Hookipa Pharma 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 Hookipa Pharma will offset losses from the drop in Hookipa Pharma's long position.| Sangamo Therapeutics vs. Editas Medicine | Sangamo Therapeutics vs. Intellia Therapeutics | Sangamo Therapeutics vs. Bluebird bio | Sangamo Therapeutics vs. Alnylam Pharmaceuticals |
| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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