Correlation Between Bolt Biotherapeutics and Surrozen

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

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

Diversification Opportunities for Bolt Biotherapeutics and Surrozen

0.51

Correlation Coefficient

Bolt Biotherapeutics  Surrozen

Very weak diversification

The 3 months correlation between Bolt and Surrozen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen 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 Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Surrozen go up and down completely randomly.

Pair Corralation between Bolt Biotherapeutics and Surrozen

Given the investment horizon of 90 days Bolt Biotherapeutics is expected to under-perform the Surrozen. But the stock apears to be less risky and, when comparing its historical volatility, Bolt Biotherapeutics is 1.42 times less risky than Surrozen. The stock trades about -0.21 of its potential returns per unit of risk. The Surrozen is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,295  in Surrozen on January 7, 2025 and sell it today you would lose (196.00) from holding Surrozen or give up 15.14% of portfolio value over 90 days.

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

Bolt Biotherapeutics  vs.  Surrozen

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 weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Surrozen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Surrozen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Bolt Biotherapeutics and Surrozen

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

The idea behind Bolt Biotherapeutics and Surrozen 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.