Correlation Between Crispr Therapeutics and Biogen

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

By analyzing existing cross correlation between Crispr Therapeutics AG and Biogen Inc, you can compare the effects of market volatilities on Crispr Therapeutics and Biogen 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 Crispr Therapeutics with a short position of Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crispr Therapeutics and Biogen.

Diversification Opportunities for Crispr Therapeutics and Biogen

0.23

Correlation Coefficient

Crispr Therapeutics  Biogen

Modest diversification

The 3 months correlation between Crispr and Biogen is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Crispr Therapeutics AG and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc and Crispr 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 Crispr Therapeutics AG are associated (or correlated) with Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of Crispr Therapeutics i.e., Crispr Therapeutics and Biogen go up and down completely randomly.

Pair Corralation between Crispr Therapeutics and Biogen

Given the investment horizon of 90 days Crispr Therapeutics AG is expected to generate 2.07 times more return on investment than Biogen. However, Crispr Therapeutics is 2.07 times more volatile than Biogen Inc. It trades about 0.19 of its potential returns per unit of risk. Biogen Inc is currently generating about 0.07 per unit of risk. If you would invest  3,868  in Crispr Therapeutics AG on May 19, 2025 and sell it today you would earn a total of  2,105  from holding Crispr Therapeutics AG or generate 54.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Crispr Therapeutics AG  vs.  Biogen Inc

Crispr Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Crispr Therapeutics AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Crispr Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Biogen Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Biogen Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Biogen may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Crispr Therapeutics and Biogen

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

The idea behind Crispr Therapeutics AG and Biogen Inc 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.