Correlation Between Intellia Therapeutics and Biogen

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

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

Diversification Opportunities for Intellia Therapeutics and Biogen

0.49

Correlation Coefficient

Intellia Therapeutics  Biogen

Very weak diversification

The 3 months correlation between Intellia and Biogen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intellia Therapeutics and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc and Intellia 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 Intellia Therapeutics 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 Intellia Therapeutics i.e., Intellia Therapeutics and Biogen go up and down completely randomly.

Pair Corralation between Intellia Therapeutics and Biogen

Given the investment horizon of 90 days Intellia Therapeutics is expected to generate 2.43 times more return on investment than Biogen. However, Intellia Therapeutics is 2.43 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 0.13 per unit of risk. If you would invest  1,112  in Intellia Therapeutics on July 8, 2025 and sell it today you would earn a total of  884.00  from holding Intellia Therapeutics or generate 79.5% return on investment over 90 days.

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

Intellia Therapeutics  vs.  Biogen Inc

Intellia Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intellia Therapeutics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain essential indicators, Intellia Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Biogen Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Biogen Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Biogen sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intellia Therapeutics and Biogen

The main advantage of trading using opposite Intellia Therapeutics and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellia 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 Intellia Therapeutics 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.