Correlation Between Revance and Blueprint Medicines
Can any of the company-specific risk be diversified away by investing in both Revance and Blueprint Medicines 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 Revance and Blueprint Medicines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revance and Blueprint Medicines Corp, you can compare the effects of market volatilities on Revance and Blueprint Medicines 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 Revance with a short position of Blueprint Medicines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revance and Blueprint Medicines.
Diversification Opportunities for Revance and Blueprint Medicines
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Revance and Blueprint is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Revance and Blueprint Medicines Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blueprint Medicines Corp and Revance 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 Revance are associated (or correlated) with Blueprint Medicines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blueprint Medicines Corp has no effect on the direction of Revance i.e., Revance and Blueprint Medicines go up and down completely randomly.
Pair Corralation between Revance and Blueprint Medicines
Given the investment horizon of 90 days Revance is expected to generate 0.09 times more return on investment than Blueprint Medicines. However, Revance is 11.38 times less risky than Blueprint Medicines. It trades about 0.0 of its potential returns per unit of risk. Blueprint Medicines Corp is currently generating about -0.47 per unit of risk. If you would invest 365.00 in Revance on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Revance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.86% |
| Values | Daily Returns |
Revance vs. Blueprint Medicines Corp
Performance |
| Timeline |
| Revance |
Risk-Adjusted Performance
Weak
Weak | Strong |
| Blueprint Medicines Corp |
Revance and Blueprint Medicines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revance and Blueprint Medicines
The main advantage of trading using opposite Revance and Blueprint Medicines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revance position performs unexpectedly, Blueprint Medicines 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 Blueprint Medicines will offset losses from the drop in Blueprint Medicines' long position.| Revance vs. DiaMedica Therapeutics | Revance vs. Akero Therapeutics | Revance vs. Nuvalent | Revance vs. Immunocore Holdings |
| Blueprint Medicines vs. Terns Pharmaceuticals | Blueprint Medicines vs. Amylyx Pharmaceuticals | Blueprint Medicines vs. Acumen Pharmaceuticals | Blueprint Medicines 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |