Correlation Between Reata Pharmaceuticals and BioXcel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Reata Pharmaceuticals and BioXcel 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 Reata Pharmaceuticals and BioXcel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reata Pharmaceuticals and BioXcel Therapeutics, you can compare the effects of market volatilities on Reata Pharmaceuticals and BioXcel 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 Reata Pharmaceuticals with a short position of BioXcel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reata Pharmaceuticals and BioXcel Therapeutics.
Diversification Opportunities for Reata Pharmaceuticals and BioXcel Therapeutics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Reata and BioXcel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Reata Pharmaceuticals and BioXcel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioXcel Therapeutics and Reata 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 Reata Pharmaceuticals are associated (or correlated) with BioXcel Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioXcel Therapeutics has no effect on the direction of Reata Pharmaceuticals i.e., Reata Pharmaceuticals and BioXcel Therapeutics go up and down completely randomly.
Pair Corralation between Reata Pharmaceuticals and BioXcel Therapeutics
If you would invest 10,967 in Reata Pharmaceuticals on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Reata Pharmaceuticals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Reata Pharmaceuticals vs. BioXcel Therapeutics
Performance |
| Timeline |
| Reata Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioXcel Therapeutics |
Reata Pharmaceuticals and BioXcel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reata Pharmaceuticals and BioXcel Therapeutics
The main advantage of trading using opposite Reata Pharmaceuticals and BioXcel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reata Pharmaceuticals position performs unexpectedly, BioXcel 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 BioXcel Therapeutics will offset losses from the drop in BioXcel Therapeutics' long position.| Reata Pharmaceuticals vs. Sarepta Therapeutics | Reata Pharmaceuticals vs. Krystal Biotech | Reata Pharmaceuticals vs. PTC Therapeutics | Reata Pharmaceuticals vs. Madrigal Pharmaceuticals |
| BioXcel Therapeutics vs. Terns Pharmaceuticals | BioXcel Therapeutics vs. Amylyx Pharmaceuticals | BioXcel Therapeutics vs. Acumen Pharmaceuticals | BioXcel Therapeutics vs. Inozyme Pharma |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |