Correlation Between Bicycle Therapeutics and Cullinan Oncology
Can any of the company-specific risk be diversified away by investing in both Bicycle Therapeutics and Cullinan Oncology 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 Bicycle Therapeutics and Cullinan Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bicycle Therapeutics and Cullinan Oncology LLC, you can compare the effects of market volatilities on Bicycle Therapeutics and Cullinan Oncology 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 Bicycle Therapeutics with a short position of Cullinan Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bicycle Therapeutics and Cullinan Oncology.
Diversification Opportunities for Bicycle Therapeutics and Cullinan Oncology
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bicycle and Cullinan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bicycle Therapeutics and Cullinan Oncology LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullinan Oncology LLC and Bicycle Therapeutics 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 Bicycle Therapeutics are associated (or correlated) with Cullinan Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullinan Oncology LLC has no effect on the direction of Bicycle Therapeutics i.e., Bicycle Therapeutics and Cullinan Oncology go up and down completely randomly.
Pair Corralation between Bicycle Therapeutics and Cullinan Oncology
Given the investment horizon of 90 days Bicycle Therapeutics is expected to generate 0.6 times more return on investment than Cullinan Oncology. However, Bicycle Therapeutics is 1.68 times less risky than Cullinan Oncology. It trades about -0.41 of its potential returns per unit of risk. Cullinan Oncology LLC is currently generating about -0.27 per unit of risk. If you would invest 2,479 in Bicycle Therapeutics on August 28, 2024 and sell it today you would lose (484.00) from holding Bicycle Therapeutics or give up 19.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bicycle Therapeutics vs. Cullinan Oncology LLC
Performance |
| Timeline |
| Bicycle Therapeutics |
| Cullinan Oncology LLC |
Bicycle Therapeutics and Cullinan Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bicycle Therapeutics and Cullinan Oncology
The main advantage of trading using opposite Bicycle Therapeutics and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bicycle Therapeutics position performs unexpectedly, Cullinan Oncology 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 Cullinan Oncology will offset losses from the drop in Cullinan Oncology's long position.| Bicycle Therapeutics vs. Ideaya Biosciences | Bicycle Therapeutics vs. AnaptysBio | Bicycle Therapeutics vs. MeiraGTx Holdings PLC | Bicycle Therapeutics vs. Keros Therapeutics |
| Cullinan Oncology vs. Eliem Therapeutics | Cullinan Oncology vs. HCW Biologics | Cullinan Oncology vs. Scpharmaceuticals | Cullinan Oncology vs. Milestone Pharmaceuticals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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