Correlation Between Blueprint Medicines and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Blueprint Medicines and Sellas Life 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 Sellas Life 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 Sellas Life Sciences, you can compare the effects of market volatilities on Blueprint Medicines and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueprint Medicines and Sellas Life.
Diversification Opportunities for Blueprint Medicines and Sellas Life
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blueprint and Sellas is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and Sellas Life go up and down completely randomly.
Pair Corralation between Blueprint Medicines and Sellas Life
Given the investment horizon of 90 days Blueprint Medicines Corp is expected to generate 0.56 times more return on investment than Sellas Life. However, Blueprint Medicines Corp is 1.79 times less risky than Sellas Life. It trades about 0.07 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about -0.01 per unit of risk. If you would invest 4,429 in Blueprint Medicines Corp on September 1, 2024 and sell it today you would earn a total of 5,209 from holding Blueprint Medicines Corp or generate 117.61% 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. Sellas Life Sciences
Performance |
| Timeline |
| Blueprint Medicines Corp |
| Sellas Life Sciences |
Blueprint Medicines and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueprint Medicines and Sellas Life
The main advantage of trading using opposite Blueprint Medicines and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueprint Medicines position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Blueprint Medicines vs. Terns Pharmaceuticals | Blueprint Medicines vs. Amylyx Pharmaceuticals | Blueprint Medicines vs. Acumen Pharmaceuticals | Blueprint Medicines vs. Inozyme Pharma |
| Sellas Life vs. Tff Pharmaceuticals | Sellas Life vs. Eliem Therapeutics | Sellas Life vs. Inhibrx | Sellas Life vs. Enliven 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |