Correlation Between Blueprint Medicines and Surrozen
Can any of the company-specific risk be diversified away by investing in both Blueprint Medicines and Surrozen 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 Surrozen 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 Surrozen, you can compare the effects of market volatilities on Blueprint Medicines and Surrozen 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 Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueprint Medicines and Surrozen.
Diversification Opportunities for Blueprint Medicines and Surrozen
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blueprint and Surrozen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen 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 Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and Surrozen go up and down completely randomly.
Pair Corralation between Blueprint Medicines and Surrozen
Given the investment horizon of 90 days Blueprint Medicines Corp is expected to generate 0.62 times more return on investment than Surrozen. However, Blueprint Medicines Corp is 1.6 times less risky than Surrozen. It trades about 0.28 of its potential returns per unit of risk. Surrozen is currently generating about -0.13 per unit of risk. If you would invest 9,162 in Blueprint Medicines Corp on October 26, 2024 and sell it today you would earn a total of 2,401 from holding Blueprint Medicines Corp or generate 26.21% 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. Surrozen
Performance |
| Timeline |
| Blueprint Medicines Corp |
| Surrozen |
Blueprint Medicines and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueprint Medicines and Surrozen
The main advantage of trading using opposite Blueprint Medicines and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueprint Medicines position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.| Blueprint Medicines vs. Surrozen | Blueprint Medicines vs. Armata Pharmaceuticals | Blueprint Medicines vs. Pasithea Therapeutics Corp | Blueprint Medicines vs. Aditxt Inc |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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