Correlation Between Intellia Therapeutics and Fate Therapeutics
Can any of the company-specific risk be diversified away by investing in both Intellia Therapeutics and Fate Therapeutics 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 Intellia Therapeutics and Fate Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellia Therapeutics and Fate Therapeutics, you can compare the effects of market volatilities on Intellia Therapeutics and Fate Therapeutics 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 Intellia Therapeutics with a short position of Fate Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellia Therapeutics and Fate Therapeutics.
Diversification Opportunities for Intellia Therapeutics and Fate Therapeutics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intellia and Fate is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Intellia Therapeutics and Fate Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fate Therapeutics and Intellia 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 Intellia Therapeutics are associated (or correlated) with Fate Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fate Therapeutics has no effect on the direction of Intellia Therapeutics i.e., Intellia Therapeutics and Fate Therapeutics go up and down completely randomly.
Pair Corralation between Intellia Therapeutics and Fate Therapeutics
Given the investment horizon of 90 days Intellia Therapeutics is expected to generate 0.62 times more return on investment than Fate Therapeutics. However, Intellia Therapeutics is 1.62 times less risky than Fate Therapeutics. It trades about -0.04 of its potential returns per unit of risk. Fate Therapeutics is currently generating about -0.02 per unit of risk. If you would invest 3,465 in Intellia Therapeutics on September 24, 2024 and sell it today you would lose (2,247) from holding Intellia Therapeutics or give up 64.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Intellia Therapeutics vs. Fate Therapeutics
Performance |
Timeline |
Intellia Therapeutics |
Fate Therapeutics |
Intellia Therapeutics and Fate Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intellia Therapeutics and Fate Therapeutics
The main advantage of trading using opposite Intellia Therapeutics and Fate Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellia Therapeutics position performs unexpectedly, Fate Therapeutics 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 Fate Therapeutics will offset losses from the drop in Fate Therapeutics' long position.Intellia Therapeutics vs. Fate Therapeutics | Intellia Therapeutics vs. Sana Biotechnology | Intellia Therapeutics vs. Caribou Biosciences | Intellia Therapeutics vs. Arcus Biosciences |
Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |