Correlation Between BriaCell Therapeutics and Senti Biosciences

Can any of the company-specific risk be diversified away by investing in both BriaCell Therapeutics and Senti Biosciences 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 BriaCell Therapeutics and Senti Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BriaCell Therapeutics Corp and Senti Biosciences, you can compare the effects of market volatilities on BriaCell Therapeutics and Senti Biosciences 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 BriaCell Therapeutics with a short position of Senti Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of BriaCell Therapeutics and Senti Biosciences.

Diversification Opportunities for BriaCell Therapeutics and Senti Biosciences

0.31

Correlation Coefficient

BriaCell Therapeutics  Senti Biosciences

Weak diversification

The 3 months correlation between BriaCell and Senti is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding BriaCell Therapeutics Corp and Senti Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senti Biosciences and BriaCell 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 BriaCell Therapeutics Corp are associated (or correlated) with Senti Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senti Biosciences has no effect on the direction of BriaCell Therapeutics i.e., BriaCell Therapeutics and Senti Biosciences go up and down completely randomly.

Pair Corralation between BriaCell Therapeutics and Senti Biosciences

Assuming the 90 days horizon BriaCell Therapeutics Corp is expected to under-perform the Senti Biosciences. In addition to that, BriaCell Therapeutics is 1.62 times more volatile than Senti Biosciences. It trades about -0.16 of its total potential returns per unit of risk. Senti Biosciences is currently generating about 0.02 per unit of volatility. If you would invest  356.00  in Senti Biosciences on December 29, 2024 and sell it today you would lose (13.00) from holding Senti Biosciences or give up 3.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.61%
Values	Daily Returns

BriaCell Therapeutics Corp  vs.  Senti Biosciences

BriaCell Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days BriaCell Therapeutics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Senti Biosciences

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Senti Biosciences are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Senti Biosciences may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with BriaCell Therapeutics and Senti Biosciences

The main advantage of trading using opposite BriaCell Therapeutics and Senti Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BriaCell Therapeutics position performs unexpectedly, Senti Biosciences 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 Senti Biosciences will offset losses from the drop in Senti Biosciences' long position.

The idea behind BriaCell Therapeutics Corp and Senti Biosciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.