Correlation Between Bicycle Therapeutics and Fusion Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Bicycle Therapeutics and Fusion Pharmaceuticals 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 Fusion Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bicycle Therapeutics and Fusion Pharmaceuticals, you can compare the effects of market volatilities on Bicycle Therapeutics and Fusion Pharmaceuticals 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 Fusion Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bicycle Therapeutics and Fusion Pharmaceuticals.
Diversification Opportunities for Bicycle Therapeutics and Fusion Pharmaceuticals
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bicycle and Fusion is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bicycle Therapeutics and Fusion Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Pharmaceuticals 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 Fusion Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Pharmaceuticals has no effect on the direction of Bicycle Therapeutics i.e., Bicycle Therapeutics and Fusion Pharmaceuticals go up and down completely randomly.
Pair Corralation between Bicycle Therapeutics and Fusion Pharmaceuticals
If you would invest 375.00 in Fusion Pharmaceuticals on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Fusion Pharmaceuticals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bicycle Therapeutics vs. Fusion Pharmaceuticals
Performance |
| Timeline |
| Bicycle Therapeutics |
| Fusion Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bicycle Therapeutics and Fusion Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bicycle Therapeutics and Fusion Pharmaceuticals
The main advantage of trading using opposite Bicycle Therapeutics and Fusion Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bicycle Therapeutics position performs unexpectedly, Fusion Pharmaceuticals 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 Fusion Pharmaceuticals will offset losses from the drop in Fusion Pharmaceuticals' long position.| Bicycle Therapeutics vs. Ideaya Biosciences | Bicycle Therapeutics vs. AnaptysBio | Bicycle Therapeutics vs. MeiraGTx Holdings PLC | Bicycle Therapeutics vs. Keros Therapeutics |
| Fusion Pharmaceuticals vs. Bicycle Therapeutics | Fusion Pharmaceuticals vs. Relmada Therapeutics | Fusion Pharmaceuticals vs. RAPT Therapeutics | Fusion Pharmaceuticals vs. NewAmsterdam Pharma |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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