Correlation Between Bolt Biotherapeutics and Edgewise Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and Edgewise 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 Bolt Biotherapeutics and Edgewise Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and Edgewise Therapeutics, you can compare the effects of market volatilities on Bolt Biotherapeutics and Edgewise 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 Bolt Biotherapeutics with a short position of Edgewise Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Edgewise Therapeutics.
Diversification Opportunities for Bolt Biotherapeutics and Edgewise Therapeutics
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bolt and Edgewise is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Edgewise Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewise Therapeutics and Bolt Biotherapeutics 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 Bolt Biotherapeutics are associated (or correlated) with Edgewise Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewise Therapeutics has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Edgewise Therapeutics go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Edgewise Therapeutics
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to generate 27.8 times less return on investment than Edgewise Therapeutics. But when comparing it to its historical volatility, Bolt Biotherapeutics is 1.34 times less risky than Edgewise Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Edgewise Therapeutics is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,950 in Edgewise Therapeutics on July 21, 2024 and sell it today you would earn a total of 607.00 from holding Edgewise Therapeutics or generate 20.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bolt Biotherapeutics vs. Edgewise Therapeutics
Performance |
Timeline |
Bolt Biotherapeutics |
Edgewise Therapeutics |
Bolt Biotherapeutics and Edgewise Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bolt Biotherapeutics and Edgewise Therapeutics
The main advantage of trading using opposite Bolt Biotherapeutics and Edgewise Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, Edgewise 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 Edgewise Therapeutics will offset losses from the drop in Edgewise Therapeutics' long position.Bolt Biotherapeutics vs. KBC Groep NV | Bolt Biotherapeutics vs. Pfizer Inc | Bolt Biotherapeutics vs. JPMorgan Chase Co | Bolt Biotherapeutics vs. Davis Select Worldwide |
Edgewise Therapeutics vs. KBC Groep NV | Edgewise Therapeutics vs. Pfizer Inc | Edgewise Therapeutics vs. JPMorgan Chase Co | Edgewise Therapeutics vs. Davis Select Worldwide |
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.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |