Correlation Between BridgeBio Pharma and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both BridgeBio Pharma and ImmunoGen 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 ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BridgeBio Pharma and ImmunoGen, you can compare the effects of market volatilities on BridgeBio Pharma and ImmunoGen 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 ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of BridgeBio Pharma and ImmunoGen.
Diversification Opportunities for BridgeBio Pharma and ImmunoGen
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BridgeBio and ImmunoGen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding BridgeBio Pharma and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen 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 ImmunoGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoGen has no effect on the direction of BridgeBio Pharma i.e., BridgeBio Pharma and ImmunoGen go up and down completely randomly.
Pair Corralation between BridgeBio Pharma and ImmunoGen
If you would invest 2,999 in BridgeBio Pharma on September 10, 2024 and sell it today you would lose (49.00) from holding BridgeBio Pharma or give up 1.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.54% |
Values | Daily Returns |
BridgeBio Pharma vs. ImmunoGen
Performance |
Timeline |
BridgeBio Pharma |
ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BridgeBio Pharma and ImmunoGen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BridgeBio Pharma and ImmunoGen
The main advantage of trading using opposite BridgeBio Pharma and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BridgeBio Pharma position performs unexpectedly, ImmunoGen 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 ImmunoGen will offset losses from the drop in ImmunoGen's long position.BridgeBio Pharma vs. Blueprint Medicines Corp | BridgeBio Pharma vs. Amylyx Pharmaceuticals | BridgeBio Pharma vs. Day One Biopharmaceuticals | BridgeBio Pharma vs. Terns Pharmaceuticals |
ImmunoGen vs. Madrigal Pharmaceuticals | ImmunoGen vs. TG Therapeutics | ImmunoGen vs. Terns Pharmaceuticals | ImmunoGen vs. Hepion Pharmaceuticals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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