Correlation Between BGNE Old and Mirati Ther
Can any of the company-specific risk be diversified away by investing in both BGNE Old and Mirati Ther 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 BGNE Old and Mirati Ther into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGNE Old and Mirati Ther, you can compare the effects of market volatilities on BGNE Old and Mirati Ther 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 BGNE Old with a short position of Mirati Ther. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGNE Old and Mirati Ther.
Diversification Opportunities for BGNE Old and Mirati Ther
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BGNE and Mirati is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding BGNE Old and Mirati Ther in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirati Ther and BGNE Old 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 BGNE Old are associated (or correlated) with Mirati Ther. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirati Ther has no effect on the direction of BGNE Old i.e., BGNE Old and Mirati Ther go up and down completely randomly.
Pair Corralation between BGNE Old and Mirati Ther
Given the investment horizon of 90 days BGNE Old is expected to generate 0.92 times more return on investment than Mirati Ther. However, BGNE Old is 1.09 times less risky than Mirati Ther. It trades about -0.01 of its potential returns per unit of risk. Mirati Ther is currently generating about -0.11 per unit of risk. If you would invest 24,448 in BGNE Old on November 1, 2024 and sell it today you would lose (5,977) from holding BGNE Old or give up 24.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 23.74% |
| Values | Daily Returns |
BGNE Old vs. Mirati Ther
Performance |
| Timeline |
| BGNE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mirati Ther |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BGNE Old and Mirati Ther Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGNE Old and Mirati Ther
The main advantage of trading using opposite BGNE Old and Mirati Ther positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGNE Old position performs unexpectedly, Mirati Ther 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 Mirati Ther will offset losses from the drop in Mirati Ther's long position.| BGNE Old vs. Ascendis Pharma AS | BGNE Old vs. Apellis Pharmaceuticals | BGNE Old vs. Akero Therapeutics | BGNE Old vs. Blueprint Medicines Corp |
| Mirati Ther vs. Sarepta Therapeutics | Mirati Ther vs. Krystal Biotech | Mirati Ther vs. Day One Biopharmaceuticals | Mirati Ther vs. Amylyx 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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