Correlation Between Bolt Biotherapeutics and Nuvation Bio

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

By analyzing existing cross correlation between Bolt Biotherapeutics and Nuvation Bio, you can compare the effects of market volatilities on Bolt Biotherapeutics and Nuvation Bio 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 Nuvation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Nuvation Bio.

Diversification Opportunities for Bolt Biotherapeutics and Nuvation Bio

0.26

Correlation Coefficient

Bolt Biotherapeutics  Nuvation Bio

Modest diversification

The 3 months correlation between Bolt and Nuvation is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Nuvation Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvation Bio 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 Nuvation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvation Bio has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Nuvation Bio go up and down completely randomly.

Pair Corralation between Bolt Biotherapeutics and Nuvation Bio

Given the investment horizon of 90 days Bolt Biotherapeutics is expected to under-perform the Nuvation Bio. But the stock apears to be less risky and, when comparing its historical volatility, Bolt Biotherapeutics is 1.23 times less risky than Nuvation Bio. The stock trades about -0.06 of its potential returns per unit of risk. The Nuvation Bio is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  209.00  in Nuvation Bio on May 6, 2025 and sell it today you would earn a total of  22.00  from holding Nuvation Bio or generate 10.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bolt Biotherapeutics  vs.  Nuvation Bio

Bolt Biotherapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bolt Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Nuvation Bio

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nuvation Bio are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Nuvation Bio sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bolt Biotherapeutics and Nuvation Bio

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

The idea behind Bolt Biotherapeutics and Nuvation Bio 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.