Correlation Between Kiniksa Pharmaceuticals and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Kiniksa Pharmaceuticals and Bolt Biotherapeutics 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 Kiniksa Pharmaceuticals and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiniksa Pharmaceuticals and Bolt Biotherapeutics, you can compare the effects of market volatilities on Kiniksa Pharmaceuticals and Bolt Biotherapeutics 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 Kiniksa Pharmaceuticals with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiniksa Pharmaceuticals and Bolt Biotherapeutics.
Diversification Opportunities for Kiniksa Pharmaceuticals and Bolt Biotherapeutics
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kiniksa and Bolt is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kiniksa Pharmaceuticals and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and Kiniksa Pharmaceuticals 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 Kiniksa Pharmaceuticals are associated (or correlated) with Bolt Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Biotherapeutics has no effect on the direction of Kiniksa Pharmaceuticals i.e., Kiniksa Pharmaceuticals and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between Kiniksa Pharmaceuticals and Bolt Biotherapeutics
Given the investment horizon of 90 days Kiniksa Pharmaceuticals is expected to generate 0.73 times more return on investment than Bolt Biotherapeutics. However, Kiniksa Pharmaceuticals is 1.36 times less risky than Bolt Biotherapeutics. It trades about 0.03 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.06 per unit of risk. If you would invest 1,812 in Kiniksa Pharmaceuticals on November 3, 2024 and sell it today you would earn a total of 154.00 from holding Kiniksa Pharmaceuticals or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kiniksa Pharmaceuticals vs. Bolt Biotherapeutics
Performance |
| Timeline |
| Kiniksa Pharmaceuticals |
| Bolt Biotherapeutics |
Kiniksa Pharmaceuticals and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiniksa Pharmaceuticals and Bolt Biotherapeutics
The main advantage of trading using opposite Kiniksa Pharmaceuticals and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiniksa Pharmaceuticals position performs unexpectedly, Bolt Biotherapeutics 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 Bolt Biotherapeutics will offset losses from the drop in Bolt Biotherapeutics' long position.| Kiniksa Pharmaceuticals vs. Nuvalent | Kiniksa Pharmaceuticals vs. Ventyx Biosciences | Kiniksa Pharmaceuticals vs. Arcellx | Kiniksa Pharmaceuticals vs. Cullinan Oncology LLC |
| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |