Correlation Between Bolt Biotherapeutics and Larimar Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Larimar Therapeutics 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 Larimar Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and Larimar Therapeutics, you can compare the effects of market volatilities on Bolt Biotherapeutics and Larimar Therapeutics 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 Larimar Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Larimar Therapeutics.
Diversification Opportunities for Bolt Biotherapeutics and Larimar Therapeutics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bolt and Larimar is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Larimar Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Larimar Therapeutics 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 Larimar Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Larimar Therapeutics has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Larimar Therapeutics go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Larimar Therapeutics
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to generate 0.44 times more return on investment than Larimar Therapeutics. However, Bolt Biotherapeutics is 2.28 times less risky than Larimar Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Larimar Therapeutics is currently generating about -0.17 per unit of risk. If you would invest 63.00 in Bolt Biotherapeutics on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Bolt Biotherapeutics or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. Larimar Therapeutics
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Larimar Therapeutics |
Bolt Biotherapeutics and Larimar Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Larimar Therapeutics
The main advantage of trading using opposite Bolt Biotherapeutics and Larimar Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Larimar Therapeutics 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 Larimar Therapeutics will offset losses from the drop in Larimar Therapeutics' long position.| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
| Larimar Therapeutics vs. Vaxcyte | Larimar Therapeutics vs. Syndax Pharmaceuticals | Larimar Therapeutics vs. Merus BV | Larimar Therapeutics vs. Sutro Biopharma |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |