Correlation Between ATyr Pharma and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both ATyr Pharma 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 ATyr Pharma and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATyr Pharma and Bolt Biotherapeutics, you can compare the effects of market volatilities on ATyr Pharma 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 ATyr Pharma with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATyr Pharma and Bolt Biotherapeutics.
Diversification Opportunities for ATyr Pharma and Bolt Biotherapeutics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ATyr and Bolt is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ATyr Pharma and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and ATyr Pharma 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 ATyr Pharma 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 ATyr Pharma i.e., ATyr Pharma and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between ATyr Pharma and Bolt Biotherapeutics
Given the investment horizon of 90 days ATyr Pharma is expected to under-perform the Bolt Biotherapeutics. In addition to that, ATyr Pharma is 1.75 times more volatile than Bolt Biotherapeutics. It trades about -0.05 of its total potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.04 per unit of volatility. If you would invest 162.00 in Bolt Biotherapeutics on August 29, 2024 and sell it today you would lose (99.00) from holding Bolt Biotherapeutics or give up 61.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.23% |
| Values | Daily Returns |
ATyr Pharma vs. Bolt Biotherapeutics
Performance |
| Timeline |
| ATyr Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bolt Biotherapeutics |
ATyr Pharma and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATyr Pharma and Bolt Biotherapeutics
The main advantage of trading using opposite ATyr Pharma and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATyr Pharma 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.| ATyr Pharma vs. Mereo BioPharma Group | ATyr Pharma vs. Terns Pharmaceuticals | ATyr Pharma vs. PDS Biotechnology Corp | ATyr Pharma vs. Inozyme Pharma |
| Bolt Biotherapeutics vs. Eliem Therapeutics | Bolt Biotherapeutics vs. Scpharmaceuticals | Bolt Biotherapeutics vs. Milestone Pharmaceuticals | Bolt Biotherapeutics vs. Seres 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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