Correlation Between Bioatla and Bolt Biotherapeutics
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bioatla vs. Bolt Biotherapeutics
Performance |
Timeline |
Bioatla |
Bolt Biotherapeutics |
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.Bioatla vs. Pmv Pharmaceuticals | Bioatla vs. C4 Therapeutics | Bioatla vs. Nautilus Biotechnology | Bioatla vs. Century Therapeutics |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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