Correlation Between Black Diamond and Y MAbs
Can any of the company-specific risk be diversified away by investing in both Black Diamond and Y MAbs 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 Black Diamond and Y MAbs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Diamond Therapeutics and Y mAbs Therapeutics, you can compare the effects of market volatilities on Black Diamond and Y MAbs 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 Black Diamond with a short position of Y MAbs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Diamond and Y MAbs.
Diversification Opportunities for Black Diamond and Y MAbs
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Black and YMAB is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Black Diamond Therapeutics and Y mAbs Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y mAbs Therapeutics and Black Diamond 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 Black Diamond Therapeutics are associated (or correlated) with Y MAbs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y mAbs Therapeutics has no effect on the direction of Black Diamond i.e., Black Diamond and Y MAbs go up and down completely randomly.
Pair Corralation between Black Diamond and Y MAbs
Given the investment horizon of 90 days Black Diamond Therapeutics is expected to generate 0.95 times more return on investment than Y MAbs. However, Black Diamond Therapeutics is 1.06 times less risky than Y MAbs. It trades about -0.09 of its potential returns per unit of risk. Y mAbs Therapeutics is currently generating about -0.19 per unit of risk. If you would invest 287.00 in Black Diamond Therapeutics on August 31, 2024 and sell it today you would lose (30.00) from holding Black Diamond Therapeutics or give up 10.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Black Diamond Therapeutics vs. Y mAbs Therapeutics
Performance |
| Timeline |
| Black Diamond Therap |
| Y mAbs Therapeutics |
Black Diamond and Y MAbs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Diamond and Y MAbs
The main advantage of trading using opposite Black Diamond and Y MAbs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Diamond position performs unexpectedly, Y MAbs 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 Y MAbs will offset losses from the drop in Y MAbs' long position.| Black Diamond vs. Passage Bio | Black Diamond vs. Alector | Black Diamond vs. Revolution Medicines | Black Diamond vs. Stoke Therapeutics |
| Y MAbs vs. Revolution Medicines | Y MAbs vs. Black Diamond Therapeutics | Y MAbs vs. Passage Bio | Y MAbs vs. Bluebird bio |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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