Correlation Between Amylyx Pharmaceuticals and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amylyx Pharmaceuticals and Bolt Biotherapeutics, you can compare the effects of market volatilities on Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amylyx Pharmaceuticals and Bolt Biotherapeutics.
Diversification Opportunities for Amylyx Pharmaceuticals and Bolt Biotherapeutics
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amylyx and Bolt is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amylyx Pharmaceuticals and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals i.e., Amylyx Pharmaceuticals and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between Amylyx Pharmaceuticals and Bolt Biotherapeutics
Given the investment horizon of 90 days Amylyx Pharmaceuticals is expected to generate 2.22 times more return on investment than Bolt Biotherapeutics. However, Amylyx Pharmaceuticals is 2.22 times more volatile than Bolt Biotherapeutics. It trades about 0.08 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.2 per unit of risk. If you would invest 496.00 in Amylyx Pharmaceuticals on August 24, 2024 and sell it today you would earn a total of 37.50 from holding Amylyx Pharmaceuticals or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amylyx Pharmaceuticals vs. Bolt Biotherapeutics
Performance |
| Timeline |
| Amylyx Pharmaceuticals |
| Bolt Biotherapeutics |
Amylyx Pharmaceuticals and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amylyx Pharmaceuticals and Bolt Biotherapeutics
The main advantage of trading using opposite Amylyx Pharmaceuticals and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amylyx Pharmaceuticals 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.| Amylyx Pharmaceuticals vs. Terns Pharmaceuticals | Amylyx Pharmaceuticals vs. Acumen Pharmaceuticals | Amylyx Pharmaceuticals vs. Inozyme Pharma | Amylyx Pharmaceuticals vs. X4 Pharmaceuticals |
| Bolt Biotherapeutics vs. Lyra Therapeutics | Bolt Biotherapeutics vs. Hookipa Pharma | Bolt Biotherapeutics vs. Cingulate Warrants | Bolt Biotherapeutics vs. SAB Biotherapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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