Correlation Between Bolt Biotherapeutics and Soleno Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Soleno 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 Soleno 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 Soleno Therapeutics, you can compare the effects of market volatilities on Bolt Biotherapeutics and Soleno 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 Soleno Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Soleno Therapeutics.
Diversification Opportunities for Bolt Biotherapeutics and Soleno Therapeutics
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bolt and Soleno is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Soleno Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soleno 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 Soleno Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soleno Therapeutics has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Soleno Therapeutics go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Soleno Therapeutics
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to generate 1.55 times less return on investment than Soleno Therapeutics. But when comparing it to its historical volatility, Bolt Biotherapeutics is 1.06 times less risky than Soleno Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Soleno Therapeutics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,518 in Soleno Therapeutics on October 21, 2024 and sell it today you would earn a total of 170.00 from holding Soleno Therapeutics or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. Soleno Therapeutics
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Soleno Therapeutics |
Bolt Biotherapeutics and Soleno Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Soleno Therapeutics
The main advantage of trading using opposite Bolt Biotherapeutics and Soleno Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Soleno 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 Soleno Therapeutics will offset losses from the drop in Soleno Therapeutics' long position.| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
| Soleno Therapeutics vs. Annexon | Soleno Therapeutics vs. Bolt Biotherapeutics | Soleno Therapeutics vs. Lyra Therapeutics | Soleno Therapeutics vs. Pulmatrix |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |