Correlation Between Assembly Biosciences and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Assembly Biosciences 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 Assembly Biosciences and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assembly Biosciences and Bolt Biotherapeutics, you can compare the effects of market volatilities on Assembly Biosciences 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 Assembly Biosciences with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assembly Biosciences and Bolt Biotherapeutics.
Diversification Opportunities for Assembly Biosciences and Bolt Biotherapeutics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Assembly and Bolt is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Assembly Biosciences and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and Assembly Biosciences 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 Assembly Biosciences 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 Assembly Biosciences i.e., Assembly Biosciences and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between Assembly Biosciences and Bolt Biotherapeutics
Given the investment horizon of 90 days Assembly Biosciences is expected to generate 1.46 times more return on investment than Bolt Biotherapeutics. However, Assembly Biosciences is 1.46 times more volatile than Bolt Biotherapeutics. It trades about 0.0 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.08 per unit of risk. If you would invest 1,583 in Assembly Biosciences on November 2, 2024 and sell it today you would lose (140.00) from holding Assembly Biosciences or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assembly Biosciences vs. Bolt Biotherapeutics
Performance |
| Timeline |
| Assembly Biosciences |
| Bolt Biotherapeutics |
Assembly Biosciences and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assembly Biosciences and Bolt Biotherapeutics
The main advantage of trading using opposite Assembly Biosciences and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assembly Biosciences 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.| Assembly Biosciences vs. Spero Therapeutics | Assembly Biosciences vs. Achilles Therapeutics PLC | Assembly Biosciences vs. Instil Bio | Assembly Biosciences vs. CytomX Therapeutics |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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