Correlation Between Sana Biotechnology and NRX Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology and NRX Pharmaceuticals 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 NRX Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and NRX Pharmaceuticals, you can compare the effects of market volatilities on Sana Biotechnology and NRX Pharmaceuticals 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 NRX Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and NRX Pharmaceuticals.
Diversification Opportunities for Sana Biotechnology and NRX Pharmaceuticals
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sana and NRX is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and NRX Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRX Pharmaceuticals 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 NRX Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRX Pharmaceuticals has no effect on the direction of Sana Biotechnology i.e., Sana Biotechnology and NRX Pharmaceuticals go up and down completely randomly.
Pair Corralation between Sana Biotechnology and NRX Pharmaceuticals
Given the investment horizon of 90 days Sana Biotechnology is expected to under-perform the NRX Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Sana Biotechnology is 1.26 times less risky than NRX Pharmaceuticals. The stock trades about -0.02 of its potential returns per unit of risk. The NRX Pharmaceuticals is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 600.00 in NRX Pharmaceuticals on September 25, 2024 and sell it today you would lose (450.00) from holding NRX Pharmaceuticals or give up 75.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.76% |
Values | Daily Returns |
Sana Biotechnology vs. NRX Pharmaceuticals
Performance |
Timeline |
Sana Biotechnology |
NRX Pharmaceuticals |
Sana Biotechnology and NRX Pharmaceuticals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sana Biotechnology and NRX Pharmaceuticals
The main advantage of trading using opposite Sana Biotechnology and NRX Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology position performs unexpectedly, NRX Pharmaceuticals 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 NRX Pharmaceuticals will offset losses from the drop in NRX Pharmaceuticals' long position.Sana Biotechnology vs. Fate Therapeutics | Sana Biotechnology vs. Caribou Biosciences | Sana Biotechnology vs. Arcus Biosciences | Sana Biotechnology vs. Karyopharm Therapeutics |
NRX Pharmaceuticals vs. Biomx Inc | NRX Pharmaceuticals vs. Lexaria Bioscience Corp | NRX Pharmaceuticals vs. Aditxt Inc | NRX Pharmaceuticals vs. Nutriband |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |