Correlation Between Bolt Biotherapeutics and Vaxcyte
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Vaxcyte 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 Vaxcyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and Vaxcyte, you can compare the effects of market volatilities on Bolt Biotherapeutics and Vaxcyte 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 Vaxcyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Vaxcyte.
Diversification Opportunities for Bolt Biotherapeutics and Vaxcyte
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bolt and Vaxcyte is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Vaxcyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxcyte 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 Vaxcyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxcyte has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Vaxcyte go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Vaxcyte
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to generate 0.94 times more return on investment than Vaxcyte. However, Bolt Biotherapeutics is 1.06 times less risky than Vaxcyte. It trades about -0.21 of its potential returns per unit of risk. Vaxcyte is currently generating about -0.33 per unit of risk. If you would invest 68.00 in Bolt Biotherapeutics on August 28, 2024 and sell it today you would lose (8.00) from holding Bolt Biotherapeutics or give up 11.76% 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. Vaxcyte
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Vaxcyte |
Bolt Biotherapeutics and Vaxcyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Vaxcyte
The main advantage of trading using opposite Bolt Biotherapeutics and Vaxcyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Vaxcyte 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 Vaxcyte will offset losses from the drop in Vaxcyte's long position.| Bolt Biotherapeutics vs. Eliem Therapeutics | Bolt Biotherapeutics vs. HCW Biologics | Bolt Biotherapeutics vs. Scpharmaceuticals | Bolt Biotherapeutics vs. Milestone Pharmaceuticals |
| Vaxcyte vs. Eliem Therapeutics | Vaxcyte vs. HCW Biologics | Vaxcyte vs. Scpharmaceuticals | Vaxcyte vs. Milestone Pharmaceuticals |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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