Correlation Between Sarepta Therapeutics and Immatics Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and Immatics Biotechnologies 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 Immatics Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and immatics biotechnologies GmbH, you can compare the effects of market volatilities on Sarepta Therapeutics and Immatics Biotechnologies 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 Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Immatics Biotechnologies.
Diversification Opportunities for Sarepta Therapeutics and Immatics Biotechnologies
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sarepta and Immatics is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies 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 Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Immatics Biotechnologies go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and Immatics Biotechnologies
Given the investment horizon of 90 days Sarepta Therapeutics is expected to under-perform the Immatics Biotechnologies. But the stock apears to be less risky and, when comparing its historical volatility, Sarepta Therapeutics is 40.37 times less risky than Immatics Biotechnologies. The stock trades about -0.01 of its potential returns per unit of risk. The immatics biotechnologies GmbH is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 374.00 in immatics biotechnologies GmbH on December 4, 2024 and sell it today you would lose (372.00) from holding immatics biotechnologies GmbH or give up 99.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.49% |
| Values | Daily Returns |
Sarepta Therapeutics vs. immatics biotechnologies GmbH
Performance |
| Timeline |
| Sarepta Therapeutics |
| Immatics Biotechnologies |
Sarepta Therapeutics and Immatics Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and Immatics Biotechnologies
The main advantage of trading using opposite Sarepta Therapeutics and Immatics Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, Immatics Biotechnologies 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 Immatics Biotechnologies will offset losses from the drop in Immatics Biotechnologies' long position.| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal Pharmaceuticals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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