Correlation Between Bolt Biotherapeutics and Annexon
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Annexon 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 Bolt Biotherapeutics and Annexon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and Annexon, you can compare the effects of market volatilities on Bolt Biotherapeutics and Annexon 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 Bolt Biotherapeutics with a short position of Annexon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Annexon.
Diversification Opportunities for Bolt Biotherapeutics and Annexon
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bolt and Annexon is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and Bolt Biotherapeutics 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 Bolt Biotherapeutics are associated (or correlated) with Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Annexon go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Annexon
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to under-perform the Annexon. But the stock apears to be less risky and, when comparing its historical volatility, Bolt Biotherapeutics is 1.56 times less risky than Annexon. The stock trades about -0.03 of its potential returns per unit of risk. The Annexon is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Annexon on October 21, 2024 and sell it today you would lose (290.00) from holding Annexon or give up 40.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. Annexon
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Annexon |
Bolt Biotherapeutics and Annexon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Annexon
The main advantage of trading using opposite Bolt Biotherapeutics and Annexon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Annexon 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 Annexon will offset losses from the drop in Annexon's long position.| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
| Annexon vs. Immix Biopharma | Annexon vs. Cns Pharmaceuticals | Annexon vs. Hepion Pharmaceuticals | Annexon vs. Day One Biopharmaceuticals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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