Correlation Between Sarepta Therapeutics and AnaptysBio
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and AnaptysBio 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 Sarepta Therapeutics and AnaptysBio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and AnaptysBio, you can compare the effects of market volatilities on Sarepta Therapeutics and AnaptysBio 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 Sarepta Therapeutics with a short position of AnaptysBio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and AnaptysBio.
Diversification Opportunities for Sarepta Therapeutics and AnaptysBio
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sarepta and AnaptysBio is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio and Sarepta 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 Sarepta Therapeutics are associated (or correlated) with AnaptysBio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnaptysBio has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and AnaptysBio go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and AnaptysBio
Given the investment horizon of 90 days Sarepta Therapeutics is expected to under-perform the AnaptysBio. But the stock apears to be less risky and, when comparing its historical volatility, Sarepta Therapeutics is 3.77 times less risky than AnaptysBio. The stock trades about -0.22 of its potential returns per unit of risk. The AnaptysBio is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,666 in AnaptysBio on December 4, 2024 and sell it today you would earn a total of 16.00 from holding AnaptysBio or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sarepta Therapeutics vs. AnaptysBio
Performance |
| Timeline |
| Sarepta Therapeutics |
| AnaptysBio |
Sarepta Therapeutics and AnaptysBio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and AnaptysBio
The main advantage of trading using opposite Sarepta Therapeutics and AnaptysBio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, AnaptysBio 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 AnaptysBio will offset losses from the drop in AnaptysBio's long position.| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal Pharmaceuticals |
| AnaptysBio vs. Beam Therapeutics | AnaptysBio vs. Editas Medicine | AnaptysBio vs. Caribou Biosciences | AnaptysBio 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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