Correlation Between Sarepta Therapeutics and Incyte
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and Incyte 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 Incyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and Incyte, you can compare the effects of market volatilities on Sarepta Therapeutics and Incyte 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 Incyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Incyte.
Diversification Opportunities for Sarepta Therapeutics and Incyte
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sarepta and Incyte is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and Incyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incyte 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 Incyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incyte has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Incyte go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and Incyte
Given the investment horizon of 90 days Sarepta Therapeutics is expected to generate 2.17 times more return on investment than Incyte. However, Sarepta Therapeutics is 2.17 times more volatile than Incyte. It trades about 0.02 of its potential returns per unit of risk. Incyte is currently generating about -0.01 per unit of risk. If you would invest 12,086 in Sarepta Therapeutics on October 20, 2024 and sell it today you would lose (286.00) from holding Sarepta Therapeutics or give up 2.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sarepta Therapeutics vs. Incyte
Performance |
| Timeline |
| Sarepta Therapeutics |
| Incyte |
Sarepta Therapeutics and Incyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and Incyte
The main advantage of trading using opposite Sarepta Therapeutics and Incyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, Incyte 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 Incyte will offset losses from the drop in Incyte's long position.| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal Pharmaceuticals |
| Incyte vs. Alnylam Pharmaceuticals | Incyte vs. United Therapeutics | Incyte vs. Ultragenyx | Incyte vs. Apellis 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |