Correlation Between KTRA Old and Bolt Biotherapeutics

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

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

Diversification Opportunities for KTRA Old and Bolt Biotherapeutics

0.32

Correlation Coefficient

KTRA Old  Bolt Biotherapeutics

Weak diversification

The 3 months correlation between KTRA and Bolt is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KTRA Old and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and KTRA Old 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 KTRA Old are associated (or correlated) with Bolt Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Biotherapeutics has no effect on the direction of KTRA Old i.e., KTRA Old and Bolt Biotherapeutics go up and down completely randomly.

Pair Corralation between KTRA Old and Bolt Biotherapeutics

If you would invest  57.00  in Bolt Biotherapeutics on October 11, 2024 and sell it today you would lose (0.50) from holding Bolt Biotherapeutics or give up 0.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

KTRA Old  vs.  Bolt Biotherapeutics

KTRA Old

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days KTRA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, KTRA Old sustained solid returns over the last few months and may actually be approaching a breakup point.

Bolt Biotherapeutics

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with KTRA Old and Bolt Biotherapeutics

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

The idea behind KTRA Old and Bolt Biotherapeutics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.