Correlation Between Protalix Biotherapeutics and Sangamo Therapeutics
Can any of the company-specific risk be diversified away by investing in both Protalix Biotherapeutics and Sangamo 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 Protalix Biotherapeutics and Sangamo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protalix Biotherapeutics and Sangamo Therapeutics, you can compare the effects of market volatilities on Protalix Biotherapeutics and Sangamo 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 Protalix Biotherapeutics with a short position of Sangamo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protalix Biotherapeutics and Sangamo Therapeutics.
Diversification Opportunities for Protalix Biotherapeutics and Sangamo Therapeutics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Protalix and Sangamo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Protalix Biotherapeutics and Sangamo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangamo Therapeutics and Protalix Biotherapeutics 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 Protalix Biotherapeutics are associated (or correlated) with Sangamo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangamo Therapeutics has no effect on the direction of Protalix Biotherapeutics i.e., Protalix Biotherapeutics and Sangamo Therapeutics go up and down completely randomly.
Pair Corralation between Protalix Biotherapeutics and Sangamo Therapeutics
Considering the 90-day investment horizon Protalix Biotherapeutics is expected to generate 1.09 times more return on investment than Sangamo Therapeutics. However, Protalix Biotherapeutics is 1.09 times more volatile than Sangamo Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Sangamo Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 160.00 in Protalix Biotherapeutics on August 25, 2025 and sell it today you would earn a total of 15.00 from holding Protalix Biotherapeutics or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Protalix Biotherapeutics vs. Sangamo Therapeutics
Performance |
| Timeline |
| Protalix Biotherapeutics |
| Sangamo Therapeutics |
Protalix Biotherapeutics and Sangamo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protalix Biotherapeutics and Sangamo Therapeutics
The main advantage of trading using opposite Protalix Biotherapeutics and Sangamo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protalix Biotherapeutics position performs unexpectedly, Sangamo 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 Sangamo Therapeutics will offset losses from the drop in Sangamo Therapeutics' long position.| Protalix Biotherapeutics vs. Sellas Life Sciences | Protalix Biotherapeutics vs. Coherus BioSciences | Protalix Biotherapeutics vs. Invivyd | Protalix Biotherapeutics vs. Protara Therapeutics |
| Sangamo Therapeutics vs. C4 Therapeutics | Sangamo Therapeutics vs. Insight Molecular Diagnostics | Sangamo Therapeutics vs. OmniAb Inc | Sangamo Therapeutics vs. Codexis |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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