Correlation Between Blueprint Medicines and MacroGenics

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

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

Diversification Opportunities for Blueprint Medicines and MacroGenics

-0.19

Correlation Coefficient

Blueprint Medicines  MacroGenics

Good diversification

The 3 months correlation between Blueprint and MacroGenics is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and MacroGenics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MacroGenics and Blueprint Medicines 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 Blueprint Medicines Corp are associated (or correlated) with MacroGenics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MacroGenics has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and MacroGenics go up and down completely randomly.

Pair Corralation between Blueprint Medicines and MacroGenics

Given the investment horizon of 90 days Blueprint Medicines Corp is expected to generate 0.65 times more return on investment than MacroGenics. However, Blueprint Medicines Corp is 1.54 times less risky than MacroGenics. It trades about 0.19 of its potential returns per unit of risk. MacroGenics is currently generating about 0.03 per unit of risk. If you would invest  8,609  in Blueprint Medicines Corp on April 24, 2025 and sell it today you would earn a total of  4,337  from holding Blueprint Medicines Corp or generate 50.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Blueprint Medicines Corp  vs.  MacroGenics

Blueprint Medicines Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blueprint Medicines Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating primary indicators, Blueprint Medicines exhibited solid returns over the last few months and may actually be approaching a breakup point.

MacroGenics

Risk-Adjusted Performance

Weak

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

Pair Trading with Blueprint Medicines and MacroGenics

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

The idea behind Blueprint Medicines Corp and MacroGenics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.