Correlation Between Sarepta Therapeutics and Immatics Biotechnologies

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

By analyzing existing cross correlation between Sarepta Therapeutics and immatics biotechnologies GmbH, you can compare the effects of market volatilities on Sarepta Therapeutics and Immatics Biotechnologies 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 Sarepta Therapeutics with a short position of Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Immatics Biotechnologies.

Diversification Opportunities for Sarepta Therapeutics and Immatics Biotechnologies

0.1

Correlation Coefficient

Sarepta Therapeutics  Immatics Biotechnologies

Average diversification

The 3 months correlation between Sarepta and Immatics is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies and Sarepta 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 Sarepta Therapeutics are associated (or correlated) with Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Immatics Biotechnologies go up and down completely randomly.

Pair Corralation between Sarepta Therapeutics and Immatics Biotechnologies

Given the investment horizon of 90 days Sarepta Therapeutics is expected to generate 0.24 times more return on investment than Immatics Biotechnologies. However, Sarepta Therapeutics is 4.25 times less risky than Immatics Biotechnologies. It trades about 0.01 of its potential returns per unit of risk. immatics biotechnologies GmbH is currently generating about -0.29 per unit of risk. If you would invest  12,465  in Sarepta Therapeutics on September 13, 2024 and sell it today you would lose (18.00) from holding Sarepta Therapeutics or give up 0.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	89.06%
Values	Daily Returns

Sarepta Therapeutics  vs.  immatics biotechnologies GmbH

Sarepta Therapeutics

Risk-Adjusted Performance

0 of 100

Weak

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

Immatics Biotechnologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days immatics biotechnologies GmbH has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Sarepta Therapeutics and Immatics Biotechnologies

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

The idea behind Sarepta Therapeutics and immatics biotechnologies GmbH 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.