Correlation Between Vigil Neuroscience and Bolt Biotherapeutics

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

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

Diversification Opportunities for Vigil Neuroscience and Bolt Biotherapeutics

-0.65

Correlation Coefficient

Vigil Neuroscience  Bolt Biotherapeutics

Excellent diversification

The 3 months correlation between Vigil and Bolt is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vigil Neuroscience and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics and Vigil Neuroscience 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 Vigil Neuroscience 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 Vigil Neuroscience i.e., Vigil Neuroscience and Bolt Biotherapeutics go up and down completely randomly.

Pair Corralation between Vigil Neuroscience and Bolt Biotherapeutics

Given the investment horizon of 90 days Vigil Neuroscience is expected to generate 5.92 times more return on investment than Bolt Biotherapeutics. However, Vigil Neuroscience is 5.92 times more volatile than Bolt Biotherapeutics. It trades about 0.14 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.1 per unit of risk. If you would invest  190.00  in Vigil Neuroscience on March 24, 2025 and sell it today you would earn a total of  602.00  from holding Vigil Neuroscience or generate 316.84% return on investment over 90 days.

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

Vigil Neuroscience  vs.  Bolt Biotherapeutics

Vigil Neuroscience

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vigil Neuroscience are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating technical and fundamental indicators, Vigil Neuroscience disclosed solid returns over the last few months and may actually be approaching a breakup point.

Bolt Biotherapeutics

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Vigil Neuroscience and Bolt Biotherapeutics

The main advantage of trading using opposite Vigil Neuroscience and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vigil Neuroscience 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 Vigil Neuroscience 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.