Correlation Between Tectonic Therapeutic, and Intellia Therapeutics

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

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

Diversification Opportunities for Tectonic Therapeutic, and Intellia Therapeutics

-0.53

Correlation Coefficient

Tectonic Therapeutic,  Intellia Therapeutics

Excellent diversification

The 3 months correlation between Tectonic and Intellia is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tectonic Therapeutic, and Intellia Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellia Therapeutics and Tectonic Therapeutic, 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 Tectonic Therapeutic, are associated (or correlated) with Intellia Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellia Therapeutics has no effect on the direction of Tectonic Therapeutic, i.e., Tectonic Therapeutic, and Intellia Therapeutics go up and down completely randomly.

Pair Corralation between Tectonic Therapeutic, and Intellia Therapeutics

Given the investment horizon of 90 days Tectonic Therapeutic, is expected to under-perform the Intellia Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Tectonic Therapeutic, is 1.32 times less risky than Intellia Therapeutics. The stock trades about -0.02 of its potential returns per unit of risk. The Intellia Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,158  in Intellia Therapeutics on August 5, 2025 and sell it today you would earn a total of  104.00  from holding Intellia Therapeutics or generate 8.98% return on investment over 90 days.

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

Tectonic Therapeutic,  vs.  Intellia Therapeutics

Tectonic Therapeutic,

Risk-Adjusted Performance

Weakest

Over the last 90 days Tectonic Therapeutic, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Intellia Therapeutics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Intellia Therapeutics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating essential indicators, Intellia Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tectonic Therapeutic, and Intellia Therapeutics

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

The idea behind Tectonic Therapeutic, and Intellia Therapeutics 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.