Correlation Between Bioatla and Bolt Biotherapeutics

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Can any of the company-specific risk be diversified away by investing in both Bioatla 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 Bioatla and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioatla and Bolt Biotherapeutics, you can compare the effects of market volatilities on Bioatla 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 Bioatla with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioatla and Bolt Biotherapeutics.

Diversification Opportunities for Bioatla and Bolt Biotherapeutics

0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Bioatla and Bolt is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bioatla and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and Bioatla 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 Bioatla 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 Bioatla i.e., Bioatla and Bolt Biotherapeutics go up and down completely randomly.

Pair Corralation between Bioatla and Bolt Biotherapeutics

Given the investment horizon of 90 days Bioatla is expected to generate 1.79 times more return on investment than Bolt Biotherapeutics. However, Bioatla is 1.79 times more volatile than Bolt Biotherapeutics. It trades about 0.01 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.04 per unit of risk. If you would invest  326.00  in Bioatla on August 29, 2024 and sell it today you would lose (169.00) from holding Bioatla or give up 51.84% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bioatla  vs.  Bolt Biotherapeutics

 Performance 
       Timeline  
Bioatla 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bioatla has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Bioatla is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Bolt Biotherapeutics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bolt Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Bioatla and Bolt Biotherapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bioatla and Bolt Biotherapeutics

The main advantage of trading using opposite Bioatla and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioatla 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.
The idea behind Bioatla and Bolt Biotherapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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