Correlation Between Vericel Corp and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both Vericel Corp and Sana Biotechnology 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 Vericel Corp and Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vericel Corp Ord and Sana Biotechnology, you can compare the effects of market volatilities on Vericel Corp and Sana Biotechnology 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 Vericel Corp with a short position of Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and Sana Biotechnology.
Diversification Opportunities for Vericel Corp and Sana Biotechnology
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vericel and Sana is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology and Vericel Corp 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 Vericel Corp Ord are associated (or correlated) with Sana Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sana Biotechnology has no effect on the direction of Vericel Corp i.e., Vericel Corp and Sana Biotechnology go up and down completely randomly.
Pair Corralation between Vericel Corp and Sana Biotechnology
Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 0.56 times more return on investment than Sana Biotechnology. However, Vericel Corp Ord is 1.78 times less risky than Sana Biotechnology. It trades about 0.43 of its potential returns per unit of risk. Sana Biotechnology is currently generating about -0.16 per unit of risk. If you would invest 4,404 in Vericel Corp Ord on September 1, 2024 and sell it today you would earn a total of 1,410 from holding Vericel Corp Ord or generate 32.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vericel Corp Ord vs. Sana Biotechnology
Performance |
| Timeline |
| Vericel Corp Ord |
| Sana Biotechnology |
Vericel Corp and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and Sana Biotechnology
The main advantage of trading using opposite Vericel Corp and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp position performs unexpectedly, Sana Biotechnology 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 Sana Biotechnology will offset losses from the drop in Sana Biotechnology's long position.| Vericel Corp vs. Tff Pharmaceuticals | Vericel Corp vs. Eliem Therapeutics | Vericel Corp vs. Inhibrx | Vericel Corp vs. Enliven Therapeutics |
| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |