Correlation Between BridgeBio Pharma and Onconova Therapeutics
Can any of the company-specific risk be diversified away by investing in both BridgeBio Pharma and Onconova Therapeutics 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 BridgeBio Pharma and Onconova Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BridgeBio Pharma and Onconova Therapeutics, you can compare the effects of market volatilities on BridgeBio Pharma and Onconova Therapeutics 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 BridgeBio Pharma with a short position of Onconova Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BridgeBio Pharma and Onconova Therapeutics.
Diversification Opportunities for BridgeBio Pharma and Onconova Therapeutics
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BridgeBio and Onconova is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BridgeBio Pharma and Onconova Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconova Therapeutics and BridgeBio Pharma 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 BridgeBio Pharma are associated (or correlated) with Onconova Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconova Therapeutics has no effect on the direction of BridgeBio Pharma i.e., BridgeBio Pharma and Onconova Therapeutics go up and down completely randomly.
Pair Corralation between BridgeBio Pharma and Onconova Therapeutics
If you would invest 102.00 in Onconova Therapeutics on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Onconova Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
BridgeBio Pharma vs. Onconova Therapeutics
Performance |
| Timeline |
| BridgeBio Pharma |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BridgeBio Pharma and Onconova Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BridgeBio Pharma and Onconova Therapeutics
The main advantage of trading using opposite BridgeBio Pharma and Onconova Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BridgeBio Pharma position performs unexpectedly, Onconova Therapeutics 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 Onconova Therapeutics will offset losses from the drop in Onconova Therapeutics' long position.| BridgeBio Pharma vs. Blueprint Medicines Corp | BridgeBio Pharma vs. Amylyx Pharmaceuticals | BridgeBio Pharma vs. Day One Biopharmaceuticals | BridgeBio Pharma vs. Terns Pharmaceuticals |
| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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