Correlation Between BCP Investment and Erasca
Can any of the company-specific risk be diversified away by investing in both BCP Investment and Erasca 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 BCP Investment and Erasca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCP Investment Corp and Erasca Inc, you can compare the effects of market volatilities on BCP Investment and Erasca 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 BCP Investment with a short position of Erasca. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCP Investment and Erasca.
Diversification Opportunities for BCP Investment and Erasca
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BCP and Erasca is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BCP Investment Corp and Erasca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erasca Inc and BCP Investment 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 BCP Investment Corp are associated (or correlated) with Erasca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erasca Inc has no effect on the direction of BCP Investment i.e., BCP Investment and Erasca go up and down completely randomly.
Pair Corralation between BCP Investment and Erasca
Given the investment horizon of 90 days BCP Investment is expected to generate 6.72 times less return on investment than Erasca. But when comparing it to its historical volatility, BCP Investment Corp is 3.39 times less risky than Erasca. It trades about 0.12 of its potential returns per unit of risk. Erasca Inc is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Erasca Inc on September 11, 2025 and sell it today you would earn a total of 166.00 from holding Erasca Inc or generate 103.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCP Investment Corp vs. Erasca Inc
Performance |
| Timeline |
| BCP Investment Corp |
| Erasca Inc |
BCP Investment and Erasca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCP Investment and Erasca
The main advantage of trading using opposite BCP Investment and Erasca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCP Investment position performs unexpectedly, Erasca 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 Erasca will offset losses from the drop in Erasca's long position.| BCP Investment vs. OFS Capital Corp | BCP Investment vs. Silvercrest Asset Management | BCP Investment vs. Oxford Square Capital | BCP Investment vs. Phenixfin |
| Erasca vs. Astria Therapeutics | Erasca vs. ArriVent BioPharma, Common | Erasca vs. MoonLake Immunotherapeutics | Erasca vs. Iovance Biotherapeutics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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