Correlation Between Bolt Biotherapeutics and Hookipa Pharma
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Hookipa 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 Hookipa 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 Hookipa Pharma, you can compare the effects of market volatilities on Bolt Biotherapeutics and Hookipa 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 Hookipa Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Hookipa Pharma.
Diversification Opportunities for Bolt Biotherapeutics and Hookipa Pharma
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bolt and Hookipa is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Hookipa Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hookipa 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 Hookipa Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hookipa Pharma has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Hookipa Pharma go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Hookipa Pharma
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to generate 0.64 times more return on investment than Hookipa Pharma. However, Bolt Biotherapeutics is 1.56 times less risky than Hookipa Pharma. It trades about -0.2 of its potential returns per unit of risk. Hookipa Pharma is currently generating about -0.52 per unit of risk. If you would invest 65.00 in Bolt Biotherapeutics on August 24, 2024 and sell it today you would lose (8.00) from holding Bolt Biotherapeutics or give up 12.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. Hookipa Pharma
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Hookipa Pharma |
Bolt Biotherapeutics and Hookipa Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Hookipa Pharma
The main advantage of trading using opposite Bolt Biotherapeutics and Hookipa Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Hookipa 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 Hookipa Pharma will offset losses from the drop in Hookipa Pharma's long position.| Bolt Biotherapeutics vs. Lyra Therapeutics | Bolt Biotherapeutics vs. Hookipa Pharma | Bolt Biotherapeutics vs. Cingulate Warrants | Bolt Biotherapeutics vs. SAB Biotherapeutics |
| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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