Correlation Between Catalyst Biosciences and Bellerophon Therapeutics
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences and Bellerophon 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 Catalyst Biosciences and Bellerophon Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and Bellerophon Therapeutics, you can compare the effects of market volatilities on Catalyst Biosciences and Bellerophon 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 Catalyst Biosciences with a short position of Bellerophon Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and Bellerophon Therapeutics.
Diversification Opportunities for Catalyst Biosciences and Bellerophon Therapeutics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst and Bellerophon is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences and Bellerophon Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellerophon Therapeutics and Catalyst Biosciences 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 Catalyst Biosciences are associated (or correlated) with Bellerophon Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellerophon Therapeutics has no effect on the direction of Catalyst Biosciences i.e., Catalyst Biosciences and Bellerophon Therapeutics go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and Bellerophon Therapeutics
Given the investment horizon of 90 days Catalyst Biosciences is expected to generate 1.65 times less return on investment than Bellerophon Therapeutics. But when comparing it to its historical volatility, Catalyst Biosciences is 2.54 times less risky than Bellerophon Therapeutics. It trades about 0.1 of its potential returns per unit of risk. Bellerophon Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Bellerophon Therapeutics on November 2, 2024 and sell it today you would lose (76.00) from holding Bellerophon Therapeutics or give up 51.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Biosciences vs. Bellerophon Therapeutics
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bellerophon Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catalyst Biosciences and Bellerophon Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and Bellerophon Therapeutics
The main advantage of trading using opposite Catalyst Biosciences and Bellerophon Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences position performs unexpectedly, Bellerophon 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 Bellerophon Therapeutics will offset losses from the drop in Bellerophon Therapeutics' long position.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
| Bellerophon Therapeutics vs. Bio Path Holdings | Bellerophon Therapeutics vs. Capricor Therapeutics | Bellerophon Therapeutics vs. NextCure | Bellerophon Therapeutics vs. Zura Bio Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |