Correlation Between Blueprint Medicines and I Mab
Can any of the company-specific risk be diversified away by investing in both Blueprint Medicines and I Mab 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 Blueprint Medicines and I Mab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blueprint Medicines Corp and I Mab, you can compare the effects of market volatilities on Blueprint Medicines and I Mab 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 Blueprint Medicines with a short position of I Mab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueprint Medicines and I Mab.
Diversification Opportunities for Blueprint Medicines and I Mab
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blueprint and IMAB is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and I Mab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Mab and Blueprint Medicines 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 Blueprint Medicines Corp are associated (or correlated) with I Mab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Mab has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and I Mab go up and down completely randomly.
Pair Corralation between Blueprint Medicines and I Mab
Given the investment horizon of 90 days Blueprint Medicines Corp is expected to generate 1.0 times more return on investment than I Mab. However, Blueprint Medicines is 1.0 times more volatile than I Mab. It trades about 0.22 of its potential returns per unit of risk. I Mab is currently generating about -0.45 per unit of risk. If you would invest 8,440 in Blueprint Medicines Corp on August 24, 2024 and sell it today you would earn a total of 1,317 from holding Blueprint Medicines Corp or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blueprint Medicines Corp vs. I Mab
Performance |
| Timeline |
| Blueprint Medicines Corp |
| I Mab |
Blueprint Medicines and I Mab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueprint Medicines and I Mab
The main advantage of trading using opposite Blueprint Medicines and I Mab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueprint Medicines position performs unexpectedly, I Mab 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 I Mab will offset losses from the drop in I Mab's long position.| Blueprint Medicines vs. Lyra Therapeutics | Blueprint Medicines vs. Hookipa Pharma | Blueprint Medicines vs. Cingulate Warrants | Blueprint Medicines vs. SAB Biotherapeutics |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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