Correlation Between Bolt Biotherapeutics and ONTX Old
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and ONTX Old 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 ONTX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and ONTX Old, you can compare the effects of market volatilities on Bolt Biotherapeutics and ONTX Old 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 ONTX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and ONTX Old.
Diversification Opportunities for Bolt Biotherapeutics and ONTX Old
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bolt and ONTX is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and ONTX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONTX Old 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 ONTX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONTX Old has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and ONTX Old go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and ONTX Old
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to under-perform the ONTX Old. But the stock apears to be less risky and, when comparing its historical volatility, Bolt Biotherapeutics is 1.81 times less risky than ONTX Old. The stock trades about -0.03 of its potential returns per unit of risk. The ONTX Old is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 85.00 in ONTX Old on November 2, 2024 and sell it today you would earn a total of 17.00 from holding ONTX Old or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. ONTX Old
Performance |
| Timeline |
| Bolt Biotherapeutics |
| ONTX Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bolt Biotherapeutics and ONTX Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and ONTX Old
The main advantage of trading using opposite Bolt Biotherapeutics and ONTX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, ONTX Old 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 ONTX Old will offset losses from the drop in ONTX Old's long position.| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
| ONTX Old vs. Jaguar Animal Health | ONTX Old vs. Ibio Inc | ONTX Old vs. GeoVax Labs | ONTX Old vs. Ocugen Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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