Correlation Between Intellia Therapeutics and Seer

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

By analyzing existing cross correlation between Intellia Therapeutics and Seer Inc, you can compare the effects of market volatilities on Intellia Therapeutics and Seer 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 Seer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellia Therapeutics and Seer.

Diversification Opportunities for Intellia Therapeutics and Seer

0.69

Correlation Coefficient

Intellia Therapeutics  Seer

Poor diversification

The 3 months correlation between Intellia and Seer is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intellia Therapeutics and Seer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seer Inc 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 Seer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seer Inc has no effect on the direction of Intellia Therapeutics i.e., Intellia Therapeutics and Seer go up and down completely randomly.

Pair Corralation between Intellia Therapeutics and Seer

Given the investment horizon of 90 days Intellia Therapeutics is expected to under-perform the Seer. In addition to that, Intellia Therapeutics is 2.24 times more volatile than Seer Inc. It trades about -0.13 of its total potential returns per unit of risk. Seer Inc is currently generating about -0.13 per unit of volatility. If you would invest  253.00  in Seer Inc on December 2, 2024 and sell it today you would lose (43.00) from holding Seer Inc or give up 17.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Intellia Therapeutics  vs.  Seer Inc

Intellia Therapeutics

Risk-Adjusted Performance

Very Weak

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

Seer Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seer Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Intellia Therapeutics and Seer

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

The idea behind Intellia Therapeutics and Seer Inc 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.