Correlation Between Blueprint Medicines and Protagonist Therapeutics
Can any of the company-specific risk be diversified away by investing in both Blueprint Medicines and Protagonist 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 Protagonist 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 Protagonist Therapeutics, you can compare the effects of market volatilities on Blueprint Medicines and Protagonist 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 Protagonist Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueprint Medicines and Protagonist Therapeutics.
Diversification Opportunities for Blueprint Medicines and Protagonist Therapeutics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blueprint and Protagonist is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and Protagonist Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protagonist 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 Protagonist Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protagonist Therapeutics has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and Protagonist Therapeutics go up and down completely randomly.
Pair Corralation between Blueprint Medicines and Protagonist Therapeutics
Given the investment horizon of 90 days Blueprint Medicines is expected to generate 1.31 times less return on investment than Protagonist Therapeutics. But when comparing it to its historical volatility, Blueprint Medicines Corp is 1.09 times less risky than Protagonist Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Protagonist Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,141 in Protagonist Therapeutics on September 3, 2024 and sell it today you would earn a total of 239.00 from holding Protagonist Therapeutics or generate 5.77% 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. Protagonist Therapeutics
Performance |
| Timeline |
| Blueprint Medicines Corp |
| Protagonist Therapeutics |
Blueprint Medicines and Protagonist Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueprint Medicines and Protagonist Therapeutics
The main advantage of trading using opposite Blueprint Medicines and Protagonist Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueprint Medicines position performs unexpectedly, Protagonist 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 Protagonist Therapeutics will offset losses from the drop in Protagonist Therapeutics' long position.| Blueprint Medicines vs. Terns Pharmaceuticals | Blueprint Medicines vs. Amylyx Pharmaceuticals | Blueprint Medicines vs. Acumen Pharmaceuticals | Blueprint Medicines vs. Inozyme Pharma |
| Protagonist Therapeutics vs. Revolution Medicines | Protagonist Therapeutics vs. Akero Therapeutics | Protagonist Therapeutics vs. Avidity Biosciences | Protagonist Therapeutics vs. Stoke Therapeutics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |