Correlation Between Blueprint Medicines and TSINGTAO H
Can any of the company-specific risk be diversified away by investing in both Blueprint Medicines and TSINGTAO H 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 TSINGTAO H 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 TSINGTAO H , you can compare the effects of market volatilities on Blueprint Medicines and TSINGTAO H 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 TSINGTAO H. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueprint Medicines and TSINGTAO H.
Diversification Opportunities for Blueprint Medicines and TSINGTAO H
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blueprint and TSINGTAO is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Blueprint Medicines Corp and TSINGTAO H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSINGTAO H 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 TSINGTAO H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSINGTAO H has no effect on the direction of Blueprint Medicines i.e., Blueprint Medicines and TSINGTAO H go up and down completely randomly.
Pair Corralation between Blueprint Medicines and TSINGTAO H
Given the investment horizon of 90 days Blueprint Medicines Corp is expected to generate 1.35 times more return on investment than TSINGTAO H. However, Blueprint Medicines is 1.35 times more volatile than TSINGTAO H . It trades about -0.02 of its potential returns per unit of risk. TSINGTAO H is currently generating about -0.03 per unit of risk. If you would invest 8,822 in Blueprint Medicines Corp on January 23, 2024 and sell it today you would lose (137.00) from holding Blueprint Medicines Corp or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Blueprint Medicines Corp vs. TSINGTAO H
Performance |
| Timeline |
| Blueprint Medicines Corp |
| TSINGTAO H |
Blueprint Medicines and TSINGTAO H Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueprint Medicines and TSINGTAO H
The main advantage of trading using opposite Blueprint Medicines and TSINGTAO H positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueprint Medicines position performs unexpectedly, TSINGTAO H 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 TSINGTAO H will offset losses from the drop in TSINGTAO H's long position.| Blueprint Medicines vs. Terns Pharmaceuticals | Blueprint Medicines vs. Amylyx Pharmaceuticals | Blueprint Medicines vs. Acumen Pharmaceuticals | Blueprint Medicines vs. Inozyme PharmaInc |
| TSINGTAO H vs. MAROC TELECOM | TSINGTAO H vs. Waste Management | TSINGTAO H vs. Citic Telecom International | TSINGTAO H vs. China Communications Services |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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