Correlation Between Sarepta Therapeutics and National American
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and National American 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 National American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and National American University, you can compare the effects of market volatilities on Sarepta Therapeutics and National American 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 National American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and National American.
Diversification Opportunities for Sarepta Therapeutics and National American
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sarepta and National is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and National American University in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National American 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 National American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National American has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and National American go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and National American
If you would invest 9.11 in National American University on January 19, 2024 and sell it today you would earn a total of 0.00 from holding National American University or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sarepta Therapeutics vs. National American University
Performance |
| Timeline |
| Sarepta Therapeutics |
| National American |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sarepta Therapeutics and National American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and National American
The main advantage of trading using opposite Sarepta Therapeutics and National American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, National American 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 National American will offset losses from the drop in National American's long position.| Sarepta Therapeutics vs. Home Federal Bancorp | Sarepta Therapeutics vs. Betterware De Mexico | Sarepta Therapeutics vs. Provident Bancorp | Sarepta Therapeutics vs. Heartland Financial USA |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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