Correlation Between Blueprint Medicines and Sarepta Therapeutics
Can any of the company-specific risk be diversified away by investing in both Blueprint Medicines and Sarepta 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 Sarepta 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 Sarepta Therapeutics, you can compare the effects of market volatilities on Blueprint Medicines and Sarepta 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 Sarepta Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueprint Medicines and Sarepta Therapeutics.
Diversification Opportunities for Blueprint Medicines and Sarepta Therapeutics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blueprint and Sarepta is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and Sarepta Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarepta 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 Sarepta Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarepta Therapeutics has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and Sarepta Therapeutics go up and down completely randomly.
Pair Corralation between Blueprint Medicines and Sarepta Therapeutics
Given the investment horizon of 90 days Blueprint Medicines Corp is expected to generate 1.26 times more return on investment than Sarepta Therapeutics. However, Blueprint Medicines is 1.26 times more volatile than Sarepta Therapeutics. It trades about 0.22 of its potential returns per unit of risk. Sarepta Therapeutics is currently generating about -0.22 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. Sarepta Therapeutics
Performance |
| Timeline |
| Blueprint Medicines Corp |
| Sarepta Therapeutics |
Blueprint Medicines and Sarepta Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueprint Medicines and Sarepta Therapeutics
The main advantage of trading using opposite Blueprint Medicines and Sarepta Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueprint Medicines position performs unexpectedly, Sarepta 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 Sarepta Therapeutics will offset losses from the drop in Sarepta Therapeutics' long position.| Blueprint Medicines vs. Lyra Therapeutics | Blueprint Medicines vs. Hookipa Pharma | Blueprint Medicines vs. Cingulate Warrants | Blueprint Medicines vs. SAB Biotherapeutics |
| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |