Correlation Between Sana Biotechnology and Immunic

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

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

Diversification Opportunities for Sana Biotechnology and Immunic

-0.23

Correlation Coefficient

Sana Biotechnology  Immunic

Very good diversification

The 3 months correlation between Sana and Immunic is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and Immunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunic and Sana Biotechnology 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 Sana Biotechnology are associated (or correlated) with Immunic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunic has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and Immunic go up and down completely randomly.

Pair Corralation between Sana Biotechnology and Immunic

Given the investment horizon of 90 days Sana Biotechnology is expected to generate 5.95 times more return on investment than Immunic. However, Sana Biotechnology is 5.95 times more volatile than Immunic. It trades about 0.09 of its potential returns per unit of risk. Immunic is currently generating about 0.06 per unit of risk. If you would invest  170.00  in Sana Biotechnology on December 25, 2024 and sell it today you would earn a total of  72.00  from holding Sana Biotechnology or generate 42.35% return on investment over 90 days.

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

Sana Biotechnology  vs.  Immunic

Sana Biotechnology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sana Biotechnology are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sana Biotechnology sustained solid returns over the last few months and may actually be approaching a breakup point.

Immunic

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Immunic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Immunic showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sana Biotechnology and Immunic

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

The idea behind Sana Biotechnology and Immunic 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.