Correlation Between Hard To and Sana Biotechnology

Can any of the company-specific risk be diversified away by investing in both Hard To 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 Hard To and Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hard to Treat and Sana Biotechnology, you can compare the effects of market volatilities on Hard To 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 Hard To with a short position of Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hard To and Sana Biotechnology.

Diversification Opportunities for Hard To and Sana Biotechnology

0.0

Correlation Coefficient

Hard To  Sana Biotechnology

Pay attention - limited upside

The 3 months correlation between Hard and Sana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hard to Treat and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology and Hard To 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 Hard to Treat 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 Hard To i.e., Hard To and Sana Biotechnology go up and down completely randomly.

Pair Corralation between Hard To and Sana Biotechnology

If you would invest  0.00  in Hard to Treat on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Hard to Treat or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Hard to Treat  vs.  Sana Biotechnology

Hard to Treat

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hard to Treat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Hard To is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Sana Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sana Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hard To and Sana Biotechnology

The main advantage of trading using opposite Hard To and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hard To 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.

The idea behind Hard to Treat and Sana Biotechnology 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.