Correlation Between Bolt Biotherapeutics and Cingulate Warrants
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Cingulate Warrants 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 Cingulate Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and Cingulate Warrants, you can compare the effects of market volatilities on Bolt Biotherapeutics and Cingulate Warrants 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 Cingulate Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Cingulate Warrants.
Diversification Opportunities for Bolt Biotherapeutics and Cingulate Warrants
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bolt and Cingulate is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Cingulate Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate Warrants 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 Cingulate Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate Warrants has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Cingulate Warrants go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Cingulate Warrants
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to under-perform the Cingulate Warrants. But the stock apears to be less risky and, when comparing its historical volatility, Bolt Biotherapeutics is 7.53 times less risky than Cingulate Warrants. The stock trades about -0.21 of its potential returns per unit of risk. The Cingulate Warrants is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5.19 in Cingulate Warrants on August 28, 2024 and sell it today you would lose (0.46) from holding Cingulate Warrants or give up 8.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. Cingulate Warrants
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Cingulate Warrants |
Bolt Biotherapeutics and Cingulate Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Cingulate Warrants
The main advantage of trading using opposite Bolt Biotherapeutics and Cingulate Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Cingulate Warrants 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 Cingulate Warrants will offset losses from the drop in Cingulate Warrants' long position.| Bolt Biotherapeutics vs. Eliem Therapeutics | Bolt Biotherapeutics vs. HCW Biologics | Bolt Biotherapeutics vs. Scpharmaceuticals | Bolt Biotherapeutics vs. Milestone Pharmaceuticals |
| Cingulate Warrants vs. Cingulate | Cingulate Warrants vs. Celularity | Cingulate Warrants vs. NeuroSense Therapeutics Ltd |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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