Correlation Between Aptinyx and Bicycle Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aptinyx and Bicycle Therapeutics 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 Aptinyx and Bicycle Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptinyx and Bicycle Therapeutics, you can compare the effects of market volatilities on Aptinyx and Bicycle Therapeutics 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 Aptinyx with a short position of Bicycle Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptinyx and Bicycle Therapeutics.
Diversification Opportunities for Aptinyx and Bicycle Therapeutics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aptinyx and Bicycle is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aptinyx and Bicycle Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bicycle Therapeutics and Aptinyx 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 Aptinyx are associated (or correlated) with Bicycle Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bicycle Therapeutics has no effect on the direction of Aptinyx i.e., Aptinyx and Bicycle Therapeutics go up and down completely randomly.
Pair Corralation between Aptinyx and Bicycle Therapeutics
If you would invest 7.00 in Aptinyx on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Aptinyx or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aptinyx vs. Bicycle Therapeutics
Performance |
| Timeline |
| Aptinyx |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bicycle Therapeutics |
Aptinyx and Bicycle Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptinyx and Bicycle Therapeutics
The main advantage of trading using opposite Aptinyx and Bicycle Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptinyx position performs unexpectedly, Bicycle Therapeutics 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 Bicycle Therapeutics will offset losses from the drop in Bicycle Therapeutics' long position.| Aptinyx vs. Aileron Therapeutics | Aptinyx vs. ABVC Biopharma | Aptinyx vs. CytomX Therapeutics | Aptinyx vs. Assembly Biosciences |
| Bicycle Therapeutics vs. Candel Therapeutics | Bicycle Therapeutics vs. Cingulate Warrants | Bicycle Therapeutics vs. Unicycive Therapeutics | Bicycle Therapeutics vs. Cardio Diagnostics Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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