Correlation Between Bioatla and RAPT Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bioatla and RAPT 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 Bioatla and RAPT Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioatla and RAPT Therapeutics, you can compare the effects of market volatilities on Bioatla and RAPT 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 Bioatla with a short position of RAPT Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioatla and RAPT Therapeutics.
Diversification Opportunities for Bioatla and RAPT Therapeutics
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bioatla and RAPT is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bioatla and RAPT Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAPT Therapeutics 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 RAPT Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAPT Therapeutics has no effect on the direction of Bioatla i.e., Bioatla and RAPT Therapeutics go up and down completely randomly.
Pair Corralation between Bioatla and RAPT Therapeutics
Given the investment horizon of 90 days Bioatla is expected to under-perform the RAPT Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Bioatla is 1.8 times less risky than RAPT Therapeutics. The stock trades about -0.15 of its potential returns per unit of risk. The RAPT Therapeutics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 206.00 in RAPT Therapeutics on November 28, 2024 and sell it today you would lose (91.00) from holding RAPT Therapeutics or give up 44.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bioatla vs. RAPT Therapeutics
Performance |
| Timeline |
| Bioatla |
| RAPT Therapeutics |
Bioatla and RAPT Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bioatla and RAPT Therapeutics
The main advantage of trading using opposite Bioatla and RAPT Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioatla position performs unexpectedly, RAPT 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 RAPT Therapeutics will offset losses from the drop in RAPT Therapeutics' long position.| Bioatla vs. Pmv Pharmaceuticals | Bioatla vs. C4 Therapeutics | Bioatla vs. Nautilus Biotechnology | Bioatla vs. Century Therapeutics |
| RAPT Therapeutics vs. Connect Biopharma Holdings | RAPT Therapeutics vs. Tyra Biosciences | RAPT Therapeutics vs. Xilio Development | RAPT Therapeutics vs. Mineralys Therapeutics, Common |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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