Correlation Between SIGA Technologies and Alnylam Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both SIGA Technologies and Alnylam 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 SIGA Technologies and Alnylam Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIGA Technologies and Alnylam Pharmaceuticals, you can compare the effects of market volatilities on SIGA Technologies and Alnylam 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 SIGA Technologies with a short position of Alnylam Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIGA Technologies and Alnylam Pharmaceuticals.
Diversification Opportunities for SIGA Technologies and Alnylam Pharmaceuticals
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIGA and Alnylam is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SIGA Technologies and Alnylam Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alnylam Pharmaceuticals and SIGA Technologies 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 SIGA Technologies are associated (or correlated) with Alnylam Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alnylam Pharmaceuticals has no effect on the direction of SIGA Technologies i.e., SIGA Technologies and Alnylam Pharmaceuticals go up and down completely randomly.
Pair Corralation between SIGA Technologies and Alnylam Pharmaceuticals
Given the investment horizon of 90 days SIGA Technologies is expected to generate 1.8 times less return on investment than Alnylam Pharmaceuticals. In addition to that, SIGA Technologies is 1.56 times more volatile than Alnylam Pharmaceuticals. It trades about 0.1 of its total potential returns per unit of risk. Alnylam Pharmaceuticals is currently generating about 0.27 per unit of volatility. If you would invest 32,052 in Alnylam Pharmaceuticals on July 20, 2025 and sell it today you would earn a total of 16,115 from holding Alnylam Pharmaceuticals or generate 50.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIGA Technologies vs. Alnylam Pharmaceuticals
Performance |
| Timeline |
| SIGA Technologies |
| Alnylam Pharmaceuticals |
SIGA Technologies and Alnylam Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIGA Technologies and Alnylam Pharmaceuticals
The main advantage of trading using opposite SIGA Technologies and Alnylam Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIGA Technologies position performs unexpectedly, Alnylam 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 Alnylam Pharmaceuticals will offset losses from the drop in Alnylam Pharmaceuticals' long position.| SIGA Technologies vs. SNDL Inc | SIGA Technologies vs. Emergent Biosolutions | SIGA Technologies vs. Esperion Therapeutics | SIGA Technologies vs. CytomX Therapeutics |
| Alnylam Pharmaceuticals vs. Regeneron Pharmaceuticals | Alnylam Pharmaceuticals vs. argenx NV ADR | Alnylam Pharmaceuticals vs. Cencora | Alnylam Pharmaceuticals vs. Zoetis Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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