Correlation Between Cingulate Warrants and Bicycle Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cingulate Warrants 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 Cingulate Warrants and Bicycle Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate Warrants and Bicycle Therapeutics, you can compare the effects of market volatilities on Cingulate Warrants 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 Cingulate Warrants with a short position of Bicycle Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate Warrants and Bicycle Therapeutics.
Diversification Opportunities for Cingulate Warrants and Bicycle Therapeutics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cingulate and Bicycle is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Bicycle Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bicycle Therapeutics and Cingulate Warrants 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 Cingulate Warrants 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 Cingulate Warrants i.e., Cingulate Warrants and Bicycle Therapeutics go up and down completely randomly.
Pair Corralation between Cingulate Warrants and Bicycle Therapeutics
Assuming the 90 days horizon Cingulate Warrants is expected to generate 5.66 times more return on investment than Bicycle Therapeutics. However, Cingulate Warrants is 5.66 times more volatile than Bicycle Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Bicycle Therapeutics is currently generating about -0.13 per unit of risk. If you would invest 6.75 in Cingulate Warrants on September 12, 2024 and sell it today you would lose (3.38) from holding Cingulate Warrants or give up 50.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Cingulate Warrants vs. Bicycle Therapeutics
Performance |
| Timeline |
| Cingulate Warrants |
| Bicycle Therapeutics |
Cingulate Warrants and Bicycle Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate Warrants and Bicycle Therapeutics
The main advantage of trading using opposite Cingulate Warrants and Bicycle Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants 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.| Cingulate Warrants vs. Puma Biotechnology | Cingulate Warrants vs. Iovance Biotherapeutics | Cingulate Warrants vs. Sarepta Therapeutics | Cingulate Warrants vs. Day One Biopharmaceuticals |
| Bicycle Therapeutics vs. Ideaya Biosciences | Bicycle Therapeutics vs. AnaptysBio | Bicycle Therapeutics vs. MeiraGTx Holdings PLC | Bicycle Therapeutics vs. Keros Therapeutics |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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