Correlation Between Blueprint Medicines and ProQR Therapeutics
Can any of the company-specific risk be diversified away by investing in both Blueprint Medicines and ProQR 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 Blueprint Medicines and ProQR Therapeutics 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 ProQR Therapeutics BV, you can compare the effects of market volatilities on Blueprint Medicines and ProQR 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 Blueprint Medicines with a short position of ProQR Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueprint Medicines and ProQR Therapeutics.
Diversification Opportunities for Blueprint Medicines and ProQR Therapeutics
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blueprint and ProQR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and ProQR Therapeutics BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProQR Therapeutics 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 ProQR Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProQR Therapeutics has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and ProQR Therapeutics go up and down completely randomly.
Pair Corralation between Blueprint Medicines and ProQR Therapeutics
Given the investment horizon of 90 days Blueprint Medicines is expected to generate 1.3 times less return on investment than ProQR Therapeutics. But when comparing it to its historical volatility, Blueprint Medicines Corp is 2.25 times less risky than ProQR Therapeutics. It trades about 0.07 of its potential returns per unit of risk. ProQR Therapeutics BV is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 225.00 in ProQR Therapeutics BV on August 24, 2024 and sell it today you would earn a total of 137.00 from holding ProQR Therapeutics BV or generate 60.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blueprint Medicines Corp vs. ProQR Therapeutics BV
Performance |
| Timeline |
| Blueprint Medicines Corp |
| ProQR Therapeutics |
Blueprint Medicines and ProQR Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueprint Medicines and ProQR Therapeutics
The main advantage of trading using opposite Blueprint Medicines and ProQR Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueprint Medicines position performs unexpectedly, ProQR 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 ProQR Therapeutics will offset losses from the drop in ProQR Therapeutics' long position.| Blueprint Medicines vs. Lyra Therapeutics | Blueprint Medicines vs. Hookipa Pharma | Blueprint Medicines vs. Cingulate Warrants | Blueprint Medicines vs. SAB Biotherapeutics |
| ProQR Therapeutics vs. Lyra Therapeutics | ProQR Therapeutics vs. Hookipa Pharma | ProQR Therapeutics vs. Cingulate Warrants | ProQR Therapeutics 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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