Correlation Between Applied Therapeutics and Bioatla
Can any of the company-specific risk be diversified away by investing in both Applied Therapeutics and Bioatla 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 Applied Therapeutics and Bioatla into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Therapeutics and Bioatla, you can compare the effects of market volatilities on Applied Therapeutics and Bioatla 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 Applied Therapeutics with a short position of Bioatla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Therapeutics and Bioatla.
Diversification Opportunities for Applied Therapeutics and Bioatla
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Applied and Bioatla is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Applied Therapeutics and Bioatla in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioatla and Applied 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 Applied Therapeutics are associated (or correlated) with Bioatla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioatla has no effect on the direction of Applied Therapeutics i.e., Applied Therapeutics and Bioatla go up and down completely randomly.
Pair Corralation between Applied Therapeutics and Bioatla
Given the investment horizon of 90 days Applied Therapeutics is expected to under-perform the Bioatla. In addition to that, Applied Therapeutics is 1.11 times more volatile than Bioatla. It trades about -0.01 of its total potential returns per unit of risk. Bioatla is currently generating about 0.0 per unit of volatility. If you would invest 277.00 in Bioatla on September 1, 2024 and sell it today you would lose (109.00) from holding Bioatla or give up 39.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Therapeutics vs. Bioatla
Performance |
| Timeline |
| Applied Therapeutics |
| Bioatla |
Applied Therapeutics and Bioatla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Therapeutics and Bioatla
The main advantage of trading using opposite Applied Therapeutics and Bioatla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Therapeutics position performs unexpectedly, Bioatla 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 Bioatla will offset losses from the drop in Bioatla's long position.| Applied Therapeutics vs. X4 Pharmaceuticals | Applied Therapeutics vs. Terns Pharmaceuticals | Applied Therapeutics vs. Day One Biopharmaceuticals | Applied Therapeutics vs. Hookipa Pharma |
| Bioatla vs. Pmv Pharmaceuticals | Bioatla vs. C4 Therapeutics | Bioatla vs. Nautilus Biotechnology | Bioatla vs. Century Therapeutics |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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