Correlation Between Atreca and Bluebird Bio

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

By analyzing existing cross correlation between Atreca Inc and Bluebird bio, you can compare the effects of market volatilities on Atreca and Bluebird 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 Atreca with a short position of Bluebird Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreca and Bluebird Bio.

Diversification Opportunities for Atreca and Bluebird Bio

-0.15

Correlation Coefficient

Atreca  Bluebird Bio

Good diversification

The 3 months correlation between Atreca and Bluebird is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Atreca Inc and Bluebird bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluebird bio and Atreca 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 Atreca Inc are associated (or correlated) with Bluebird Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluebird bio has no effect on the direction of Atreca i.e., Atreca and Bluebird Bio go up and down completely randomly.

Pair Corralation between Atreca and Bluebird Bio

If you would invest  994.00  in Bluebird bio on October 20, 2024 and sell it today you would lose (159.00) from holding Bluebird bio or give up 16.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Atreca Inc  vs.  Bluebird bio

Atreca Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Atreca is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Bluebird bio

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bluebird bio are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Bluebird Bio exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atreca and Bluebird Bio

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

The idea behind Atreca Inc and Bluebird 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.