Correlation Between Sarepta Therapeutics and Iovance Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and Iovance Biotherapeutics 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 Iovance Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and Iovance Biotherapeutics, you can compare the effects of market volatilities on Sarepta Therapeutics and Iovance Biotherapeutics 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 Iovance Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Iovance Biotherapeutics.
Diversification Opportunities for Sarepta Therapeutics and Iovance Biotherapeutics
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sarepta and Iovance is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and Iovance Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iovance Biotherapeutics 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 Iovance Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iovance Biotherapeutics has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Iovance Biotherapeutics go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and Iovance Biotherapeutics
Given the investment horizon of 90 days Sarepta Therapeutics is expected to generate 0.44 times more return on investment than Iovance Biotherapeutics. However, Sarepta Therapeutics is 2.26 times less risky than Iovance Biotherapeutics. It trades about -0.03 of its potential returns per unit of risk. Iovance Biotherapeutics is currently generating about -0.24 per unit of risk. If you would invest 11,947 in Sarepta Therapeutics on October 20, 2024 and sell it today you would lose (147.00) from holding Sarepta Therapeutics or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sarepta Therapeutics vs. Iovance Biotherapeutics
Performance |
| Timeline |
| Sarepta Therapeutics |
| Iovance Biotherapeutics |
Sarepta Therapeutics and Iovance Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and Iovance Biotherapeutics
The main advantage of trading using opposite Sarepta Therapeutics and Iovance Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, Iovance Biotherapeutics 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 Iovance Biotherapeutics will offset losses from the drop in Iovance Biotherapeutics' long position.| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal Pharmaceuticals |
| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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