Correlation Between Sensei Biotherapeutics and Graphite Bio
Can any of the company-specific risk be diversified away by investing in both Sensei Biotherapeutics and Graphite Bio 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 Sensei Biotherapeutics and Graphite Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sensei Biotherapeutics and Graphite Bio, you can compare the effects of market volatilities on Sensei Biotherapeutics and Graphite Bio 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 Sensei Biotherapeutics with a short position of Graphite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensei Biotherapeutics and Graphite Bio.
Diversification Opportunities for Sensei Biotherapeutics and Graphite Bio
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sensei and Graphite is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sensei Biotherapeutics and Graphite Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite Bio and Sensei Biotherapeutics 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 Sensei Biotherapeutics are associated (or correlated) with Graphite Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite Bio has no effect on the direction of Sensei Biotherapeutics i.e., Sensei Biotherapeutics and Graphite Bio go up and down completely randomly.
Pair Corralation between Sensei Biotherapeutics and Graphite Bio
Given the investment horizon of 90 days Sensei Biotherapeutics is expected to generate 8.55 times less return on investment than Graphite Bio. In addition to that, Sensei Biotherapeutics is 2.13 times more volatile than Graphite Bio. It trades about 0.01 of its total potential returns per unit of risk. Graphite Bio is currently generating about 0.09 per unit of volatility. If you would invest 185.00 in Graphite Bio on August 28, 2024 and sell it today you would earn a total of 82.00 from holding Graphite Bio or generate 44.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.78% |
| Values | Daily Returns |
Sensei Biotherapeutics vs. Graphite Bio
Performance |
| Timeline |
| Sensei Biotherapeutics |
| Graphite Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sensei Biotherapeutics and Graphite Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensei Biotherapeutics and Graphite Bio
The main advantage of trading using opposite Sensei Biotherapeutics and Graphite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensei Biotherapeutics position performs unexpectedly, Graphite Bio 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 Graphite Bio will offset losses from the drop in Graphite Bio's long position.| Sensei Biotherapeutics vs. Eliem Therapeutics | Sensei Biotherapeutics vs. Scpharmaceuticals | Sensei Biotherapeutics vs. Milestone Pharmaceuticals | Sensei Biotherapeutics vs. Seres Therapeutics |
| Graphite Bio vs. Assembly Biosciences | Graphite Bio vs. Instil Bio | Graphite Bio vs. Nuvation Bio | Graphite Bio vs. Achilles Therapeutics PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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