Correlation Between Bolt Biotherapeutics and VectivBio Holding
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and VectivBio Holding 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 VectivBio Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and VectivBio Holding AG, you can compare the effects of market volatilities on Bolt Biotherapeutics and VectivBio Holding 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 VectivBio Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and VectivBio Holding.
Diversification Opportunities for Bolt Biotherapeutics and VectivBio Holding
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bolt and VectivBio is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and VectivBio Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VectivBio Holding 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 VectivBio Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VectivBio Holding has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and VectivBio Holding go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and VectivBio Holding
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to under-perform the VectivBio Holding. But the stock apears to be less risky and, when comparing its historical volatility, Bolt Biotherapeutics is 1.13 times less risky than VectivBio Holding. The stock trades about -0.03 of its potential returns per unit of risk. The VectivBio Holding AG is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 753.00 in VectivBio Holding AG on November 2, 2024 and sell it today you would earn a total of 932.00 from holding VectivBio Holding AG or generate 123.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 20.85% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. VectivBio Holding AG
Performance |
| Timeline |
| Bolt Biotherapeutics |
| VectivBio Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bolt Biotherapeutics and VectivBio Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and VectivBio Holding
The main advantage of trading using opposite Bolt Biotherapeutics and VectivBio Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, VectivBio Holding 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 VectivBio Holding will offset losses from the drop in VectivBio Holding's long position.| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
| VectivBio Holding vs. Cns Pharmaceuticals | VectivBio Holding vs. ZyVersa Therapeutics | VectivBio Holding vs. Immix Biopharma | VectivBio Holding vs. Hepion 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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