Correlation Between Sarepta Therapeutics and Y MAbs
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and Y MAbs 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 Y MAbs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and Y mAbs Therapeutics, you can compare the effects of market volatilities on Sarepta Therapeutics and Y MAbs 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 Y MAbs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Y MAbs.
Diversification Opportunities for Sarepta Therapeutics and Y MAbs
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sarepta and YMAB is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and Y mAbs Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y mAbs Therapeutics 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 Y MAbs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y mAbs Therapeutics has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Y MAbs go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and Y MAbs
Given the investment horizon of 90 days Sarepta Therapeutics is expected to generate 0.7 times more return on investment than Y MAbs. However, Sarepta Therapeutics is 1.42 times less risky than Y MAbs. It trades about -0.02 of its potential returns per unit of risk. Y mAbs Therapeutics is currently generating about -0.6 per unit of risk. If you would invest 11,897 in Sarepta Therapeutics on October 21, 2024 and sell it today you would lose (97.00) from holding Sarepta Therapeutics or give up 0.82% 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. Y mAbs Therapeutics
Performance |
| Timeline |
| Sarepta Therapeutics |
| Y mAbs Therapeutics |
Sarepta Therapeutics and Y MAbs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and Y MAbs
The main advantage of trading using opposite Sarepta Therapeutics and Y MAbs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, Y MAbs 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 Y MAbs will offset losses from the drop in Y MAbs' long position.| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal Pharmaceuticals |
| Y MAbs vs. Revolution Medicines | Y MAbs vs. Black Diamond Therapeutics | Y MAbs vs. Passage Bio | Y MAbs vs. Bluebird bio |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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