Correlation Between Biomea Fusion and Dynavax Technologies
Can any of the company-specific risk be diversified away by investing in both Biomea Fusion and Dynavax Technologies 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 Biomea Fusion and Dynavax Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomea Fusion and Dynavax Technologies, you can compare the effects of market volatilities on Biomea Fusion and Dynavax Technologies 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 Biomea Fusion with a short position of Dynavax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomea Fusion and Dynavax Technologies.
Diversification Opportunities for Biomea Fusion and Dynavax Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biomea and Dynavax is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Biomea Fusion and Dynavax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynavax Technologies and Biomea Fusion 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 Biomea Fusion are associated (or correlated) with Dynavax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynavax Technologies has no effect on the direction of Biomea Fusion i.e., Biomea Fusion and Dynavax Technologies go up and down completely randomly.
Pair Corralation between Biomea Fusion and Dynavax Technologies
Given the investment horizon of 90 days Biomea Fusion is expected to under-perform the Dynavax Technologies. In addition to that, Biomea Fusion is 1.34 times more volatile than Dynavax Technologies. It trades about -0.51 of its total potential returns per unit of risk. Dynavax Technologies is currently generating about 0.16 per unit of volatility. If you would invest 1,099 in Dynavax Technologies on August 23, 2024 and sell it today you would earn a total of 137.00 from holding Dynavax Technologies or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomea Fusion vs. Dynavax Technologies
Performance |
| Timeline |
| Biomea Fusion |
| Dynavax Technologies |
Biomea Fusion and Dynavax Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomea Fusion and Dynavax Technologies
The main advantage of trading using opposite Biomea Fusion and Dynavax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomea Fusion position performs unexpectedly, Dynavax Technologies 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 Dynavax Technologies will offset losses from the drop in Dynavax Technologies' long position.| Biomea Fusion vs. ZyVersa Therapeutics | Biomea Fusion vs. Sonnet Biotherapeutics Holdings | Biomea Fusion vs. Zura Bio Limited | Biomea Fusion vs. Phio Pharmaceuticals Corp |
| Dynavax Technologies vs. Catalent | Dynavax Technologies vs. Amphastar P | Dynavax Technologies vs. ANI Pharmaceuticals | Dynavax Technologies vs. Alkermes Plc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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