Correlation Between Atara Biotherapeutics and Bellicum Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Atara Biotherapeutics and Bellicum Pharmaceuticals 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 Atara Biotherapeutics and Bellicum Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atara Biotherapeutics and Bellicum Pharmaceuticals, you can compare the effects of market volatilities on Atara Biotherapeutics and Bellicum Pharmaceuticals 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 Atara Biotherapeutics with a short position of Bellicum Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atara Biotherapeutics and Bellicum Pharmaceuticals.
Diversification Opportunities for Atara Biotherapeutics and Bellicum Pharmaceuticals
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atara and Bellicum is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Atara Biotherapeutics and Bellicum Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellicum Pharmaceuticals and Atara Biotherapeutics 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 Atara Biotherapeutics are associated (or correlated) with Bellicum Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellicum Pharmaceuticals has no effect on the direction of Atara Biotherapeutics i.e., Atara Biotherapeutics and Bellicum Pharmaceuticals go up and down completely randomly.
Pair Corralation between Atara Biotherapeutics and Bellicum Pharmaceuticals
If you would invest 1,620 in Atara Biotherapeutics on August 27, 2024 and sell it today you would lose (473.00) from holding Atara Biotherapeutics or give up 29.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Atara Biotherapeutics vs. Bellicum Pharmaceuticals
Performance |
| Timeline |
| Atara Biotherapeutics |
| Bellicum Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atara Biotherapeutics and Bellicum Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atara Biotherapeutics and Bellicum Pharmaceuticals
The main advantage of trading using opposite Atara Biotherapeutics and Bellicum Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atara Biotherapeutics position performs unexpectedly, Bellicum Pharmaceuticals 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 Bellicum Pharmaceuticals will offset losses from the drop in Bellicum Pharmaceuticals' long position.| Atara Biotherapeutics vs. Fate Therapeutics | Atara Biotherapeutics vs. Sana Biotechnology | Atara Biotherapeutics vs. Caribou Biosciences | Atara Biotherapeutics vs. Arcus Biosciences |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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