Correlation Between Bolt Biotherapeutics and Ascletis Pharma
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Ascletis Pharma 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 Ascletis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and Ascletis Pharma, you can compare the effects of market volatilities on Bolt Biotherapeutics and Ascletis Pharma 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 Ascletis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Ascletis Pharma.
Diversification Opportunities for Bolt Biotherapeutics and Ascletis Pharma
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bolt and Ascletis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Ascletis Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascletis Pharma 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 Ascletis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascletis Pharma has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Ascletis Pharma go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Ascletis Pharma
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to generate 1.04 times more return on investment than Ascletis Pharma. However, Bolt Biotherapeutics is 1.04 times more volatile than Ascletis Pharma. It trades about -0.16 of its potential returns per unit of risk. Ascletis Pharma is currently generating about -0.21 per unit of risk. If you would invest 64.00 in Bolt Biotherapeutics on September 13, 2024 and sell it today you would lose (7.52) from holding Bolt Biotherapeutics or give up 11.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. Ascletis Pharma
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Ascletis Pharma |
Bolt Biotherapeutics and Ascletis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Ascletis Pharma
The main advantage of trading using opposite Bolt Biotherapeutics and Ascletis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Ascletis Pharma 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 Ascletis Pharma will offset losses from the drop in Ascletis Pharma's long position.| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
| Ascletis Pharma vs. Sino Biopharmaceutical Ltd | Ascletis Pharma vs. Defence Therapeutics | Ascletis Pharma vs. Aileron Therapeutics | Ascletis Pharma vs. Enlivex Therapeutics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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