Correlation Between Intellia Therapeutics and Veeva Systems

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

By analyzing existing cross correlation between Intellia Therapeutics and Veeva Systems Class, you can compare the effects of market volatilities on Intellia Therapeutics and Veeva Systems 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 Veeva Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellia Therapeutics and Veeva Systems.

Diversification Opportunities for Intellia Therapeutics and Veeva Systems

0.43

Correlation Coefficient

Intellia Therapeutics  Veeva Systems

Very weak diversification

The 3 months correlation between Intellia and Veeva is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Intellia Therapeutics and Veeva Systems Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veeva Systems Class 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 Veeva Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veeva Systems Class has no effect on the direction of Intellia Therapeutics i.e., Intellia Therapeutics and Veeva Systems go up and down completely randomly.

Pair Corralation between Intellia Therapeutics and Veeva Systems

Given the investment horizon of 90 days Intellia Therapeutics is expected to generate 2.07 times more return on investment than Veeva Systems. However, Intellia Therapeutics is 2.07 times more volatile than Veeva Systems Class. It trades about 0.16 of its potential returns per unit of risk. Veeva Systems Class is currently generating about 0.12 per unit of risk. If you would invest  725.00  in Intellia Therapeutics on May 6, 2025 and sell it today you would earn a total of  424.00  from holding Intellia Therapeutics or generate 58.48% 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.  Veeva Systems Class

Intellia Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intellia Therapeutics are ranked lower than 12 (%) 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.

Veeva Systems Class

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Veeva Systems Class are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Veeva Systems showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intellia Therapeutics and Veeva Systems

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

The idea behind Intellia Therapeutics and Veeva Systems Class 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.