Correlation Between Biodesix and Scholar Rock

Can any of the company-specific risk be diversified away by investing in both Biodesix and Scholar Rock 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 Biodesix and Scholar Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Biodesix and Scholar Rock Holding, you can compare the effects of market volatilities on Biodesix and Scholar Rock 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 Biodesix with a short position of Scholar Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biodesix and Scholar Rock.

Diversification Opportunities for Biodesix and Scholar Rock

0.0

Correlation Coefficient

Biodesix  Scholar Rock

Pay attention - limited upside

The 3 months correlation between Biodesix and Scholar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biodesix and Scholar Rock Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scholar Rock Holding and Biodesix 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 Biodesix are associated (or correlated) with Scholar Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scholar Rock Holding has no effect on the direction of Biodesix i.e., Biodesix and Scholar Rock go up and down completely randomly.

Pair Corralation between Biodesix and Scholar Rock

Given the investment horizon of 90 days Biodesix is expected to generate 1.47 times less return on investment than Scholar Rock. In addition to that, Biodesix is 2.75 times more volatile than Scholar Rock Holding. It trades about 0.03 of its total potential returns per unit of risk. Scholar Rock Holding is currently generating about 0.11 per unit of volatility. If you would invest  2,931  in Scholar Rock Holding on May 6, 2025 and sell it today you would earn a total of  768.00  from holding Scholar Rock Holding or generate 26.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Biodesix  vs.  Scholar Rock Holding

Biodesix

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Biodesix are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Biodesix showed solid returns over the last few months and may actually be approaching a breakup point.

Scholar Rock Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Scholar Rock Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Scholar Rock disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Biodesix and Scholar Rock

The main advantage of trading using opposite Biodesix and Scholar Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biodesix position performs unexpectedly, Scholar Rock 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 Scholar Rock will offset losses from the drop in Scholar Rock's long position.

The idea behind Biodesix and Scholar Rock Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.