Correlation Between Achilles Therapeutics and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Achilles Therapeutics and Bolt Biotherapeutics 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 Achilles Therapeutics and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Achilles Therapeutics PLC and Bolt Biotherapeutics, you can compare the effects of market volatilities on Achilles Therapeutics and Bolt Biotherapeutics 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 Achilles Therapeutics with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Achilles Therapeutics and Bolt Biotherapeutics.
Diversification Opportunities for Achilles Therapeutics and Bolt Biotherapeutics
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Achilles and Bolt is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Achilles Therapeutics PLC and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and Achilles 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 Achilles Therapeutics PLC are associated (or correlated) with Bolt Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Biotherapeutics has no effect on the direction of Achilles Therapeutics i.e., Achilles Therapeutics and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between Achilles Therapeutics and Bolt Biotherapeutics
Given the investment horizon of 90 days Achilles Therapeutics PLC is expected to generate 1.35 times more return on investment than Bolt Biotherapeutics. However, Achilles Therapeutics is 1.35 times more volatile than Bolt Biotherapeutics. It trades about 0.13 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.08 per unit of risk. If you would invest 71.00 in Achilles Therapeutics PLC on November 2, 2024 and sell it today you would earn a total of 41.00 from holding Achilles Therapeutics PLC or generate 57.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Achilles Therapeutics PLC vs. Bolt Biotherapeutics
Performance |
| Timeline |
| Achilles Therapeutics PLC |
| Bolt Biotherapeutics |
Achilles Therapeutics and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Achilles Therapeutics and Bolt Biotherapeutics
The main advantage of trading using opposite Achilles Therapeutics and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Achilles Therapeutics position performs unexpectedly, Bolt Biotherapeutics 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 Bolt Biotherapeutics will offset losses from the drop in Bolt Biotherapeutics' long position.| Achilles Therapeutics vs. Assembly Biosciences | Achilles Therapeutics vs. Spero Therapeutics | Achilles Therapeutics vs. Instil Bio | Achilles Therapeutics vs. Nuvation Bio |
| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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