Correlation Between Oceaneering International and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Oceaneering International 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 Oceaneering International and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oceaneering International and Bolt Biotherapeutics, you can compare the effects of market volatilities on Oceaneering International 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 Oceaneering International with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oceaneering International and Bolt Biotherapeutics.
Diversification Opportunities for Oceaneering International and Bolt Biotherapeutics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oceaneering and Bolt is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oceaneering International and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and Oceaneering International 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 Oceaneering International 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 Oceaneering International i.e., Oceaneering International and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between Oceaneering International and Bolt Biotherapeutics
Considering the 90-day investment horizon Oceaneering International is expected to generate 0.52 times more return on investment than Bolt Biotherapeutics. However, Oceaneering International is 1.93 times less risky than Bolt Biotherapeutics. It trades about 0.12 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about 0.02 per unit of risk. If you would invest 2,531 in Oceaneering International on October 26, 2024 and sell it today you would earn a total of 114.00 from holding Oceaneering International or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oceaneering International vs. Bolt Biotherapeutics
Performance |
| Timeline |
| Oceaneering International |
| Bolt Biotherapeutics |
Oceaneering International and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oceaneering International and Bolt Biotherapeutics
The main advantage of trading using opposite Oceaneering International and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oceaneering International 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.| Oceaneering International vs. Helix Energy Solutions | Oceaneering International vs. RPC Inc | Oceaneering International vs. Oil States International | Oceaneering International vs. ChampionX |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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