Correlation Between BridgeBio Pharma and Regenxbio
Can any of the company-specific risk be diversified away by investing in both BridgeBio Pharma and Regenxbio 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 Regenxbio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BridgeBio Pharma and Regenxbio, you can compare the effects of market volatilities on BridgeBio Pharma and Regenxbio 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 Regenxbio. Check out your portfolio center. Please also check ongoing floating volatility patterns of BridgeBio Pharma and Regenxbio.
Diversification Opportunities for BridgeBio Pharma and Regenxbio
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BridgeBio and Regenxbio is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BridgeBio Pharma and Regenxbio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regenxbio 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 Regenxbio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regenxbio has no effect on the direction of BridgeBio Pharma i.e., BridgeBio Pharma and Regenxbio go up and down completely randomly.
Pair Corralation between BridgeBio Pharma and Regenxbio
Given the investment horizon of 90 days BridgeBio Pharma is expected to generate 1.45 times more return on investment than Regenxbio. However, BridgeBio Pharma is 1.45 times more volatile than Regenxbio. It trades about 0.06 of its potential returns per unit of risk. Regenxbio is currently generating about -0.02 per unit of risk. If you would invest 913.00 in BridgeBio Pharma on September 2, 2024 and sell it today you would earn a total of 1,796 from holding BridgeBio Pharma or generate 196.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BridgeBio Pharma vs. Regenxbio
Performance |
| Timeline |
| BridgeBio Pharma |
| Regenxbio |
BridgeBio Pharma and Regenxbio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BridgeBio Pharma and Regenxbio
The main advantage of trading using opposite BridgeBio Pharma and Regenxbio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BridgeBio Pharma position performs unexpectedly, Regenxbio 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 Regenxbio will offset losses from the drop in Regenxbio's long position.| BridgeBio Pharma vs. Blueprint Medicines Corp | BridgeBio Pharma vs. Amylyx Pharmaceuticals | BridgeBio Pharma vs. Day One Biopharmaceuticals | BridgeBio Pharma vs. Terns Pharmaceuticals |
| Regenxbio vs. Day One Biopharmaceuticals | Regenxbio vs. Replimune Group | Regenxbio vs. Mirum Pharmaceuticals | Regenxbio vs. Rocket Pharmaceuticals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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