Correlation Between BridgeBio Pharma and Coya Therapeutics,

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

By analyzing existing cross correlation between BridgeBio Pharma and Coya Therapeutics, Common, you can compare the effects of market volatilities on BridgeBio Pharma and Coya 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 BridgeBio Pharma with a short position of Coya Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of BridgeBio Pharma and Coya Therapeutics,.

Diversification Opportunities for BridgeBio Pharma and Coya Therapeutics,

-0.31

Correlation Coefficient

BridgeBio Pharma  Coya Therapeutics,

Very good diversification

The 3 months correlation between BridgeBio and Coya is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BridgeBio Pharma and Coya Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coya Therapeutics, Common and BridgeBio Pharma 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 BridgeBio Pharma are associated (or correlated) with Coya Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coya Therapeutics, Common has no effect on the direction of BridgeBio Pharma i.e., BridgeBio Pharma and Coya Therapeutics, go up and down completely randomly.

Pair Corralation between BridgeBio Pharma and Coya Therapeutics,

Given the investment horizon of 90 days BridgeBio Pharma is expected to generate 1.08 times more return on investment than Coya Therapeutics,. However, BridgeBio Pharma is 1.08 times more volatile than Coya Therapeutics, Common. It trades about 0.05 of its potential returns per unit of risk. Coya Therapeutics, Common is currently generating about 0.04 per unit of risk. If you would invest  1,652  in BridgeBio Pharma on September 9, 2024 and sell it today you would earn a total of  1,227  from holding BridgeBio Pharma or generate 74.27% return on investment over 90 days.

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

BridgeBio Pharma  vs.  Coya Therapeutics, Common

BridgeBio Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BridgeBio Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, BridgeBio Pharma is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Coya Therapeutics, Common

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coya Therapeutics, Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Coya Therapeutics, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BridgeBio Pharma and Coya Therapeutics,

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

The idea behind BridgeBio Pharma and Coya Therapeutics, Common 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.