Correlation Between VectivBio Holding and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both VectivBio Holding 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 VectivBio Holding and Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VectivBio Holding AG and Bolt Biotherapeutics, you can compare the effects of market volatilities on VectivBio Holding 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 VectivBio Holding with a short position of Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of VectivBio Holding and Bolt Biotherapeutics.
Diversification Opportunities for VectivBio Holding and Bolt Biotherapeutics
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VectivBio and Bolt is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding VectivBio Holding AG and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and VectivBio Holding 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 VectivBio Holding AG 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 VectivBio Holding i.e., VectivBio Holding and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between VectivBio Holding and Bolt Biotherapeutics
Given the investment horizon of 90 days VectivBio Holding AG is expected to generate 1.13 times more return on investment than Bolt Biotherapeutics. However, VectivBio Holding is 1.13 times more volatile than Bolt Biotherapeutics. It trades about 0.19 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.03 per unit of risk. If you would invest 753.00 in VectivBio Holding AG on November 2, 2024 and sell it today you would earn a total of 932.00 from holding VectivBio Holding AG or generate 123.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 20.85% |
| Values | Daily Returns |
VectivBio Holding AG vs. Bolt Biotherapeutics
Performance |
| Timeline |
| VectivBio Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bolt Biotherapeutics |
VectivBio Holding and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VectivBio Holding and Bolt Biotherapeutics
The main advantage of trading using opposite VectivBio Holding and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VectivBio Holding 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.| VectivBio Holding vs. Cns Pharmaceuticals | VectivBio Holding vs. ZyVersa Therapeutics | VectivBio Holding vs. Immix Biopharma | VectivBio Holding vs. Hepion Pharmaceuticals |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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