Correlation Between X4 Pharmaceuticals and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both X4 Pharmaceuticals 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 X4 Pharmaceuticals and Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X4 Pharmaceuticals and Sana Biotechnology, you can compare the effects of market volatilities on X4 Pharmaceuticals 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 X4 Pharmaceuticals with a short position of Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of X4 Pharmaceuticals and Sana Biotechnology.
Diversification Opportunities for X4 Pharmaceuticals and Sana Biotechnology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XFOR and Sana is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding X4 Pharmaceuticals and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology and X4 Pharmaceuticals 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 X4 Pharmaceuticals 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 X4 Pharmaceuticals i.e., X4 Pharmaceuticals and Sana Biotechnology go up and down completely randomly.
Pair Corralation between X4 Pharmaceuticals and Sana Biotechnology
Given the investment horizon of 90 days X4 Pharmaceuticals is expected to under-perform the Sana Biotechnology. In addition to that, X4 Pharmaceuticals is 1.22 times more volatile than Sana Biotechnology. It trades about 0.0 of its total potential returns per unit of risk. Sana Biotechnology is currently generating about 0.01 per unit of volatility. If you would invest 435.00 in Sana Biotechnology on August 25, 2024 and sell it today you would lose (174.00) from holding Sana Biotechnology or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
X4 Pharmaceuticals vs. Sana Biotechnology
Performance |
| Timeline |
| X4 Pharmaceuticals |
| Sana Biotechnology |
X4 Pharmaceuticals and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X4 Pharmaceuticals and Sana Biotechnology
The main advantage of trading using opposite X4 Pharmaceuticals and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X4 Pharmaceuticals 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.| X4 Pharmaceuticals vs. Eliem Therapeutics | X4 Pharmaceuticals vs. HCW Biologics | X4 Pharmaceuticals vs. RenovoRx | X4 Pharmaceuticals vs. Tempest 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 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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