Correlation Between Tenaya Therapeutics and Bicycle Therapeutics
Can any of the company-specific risk be diversified away by investing in both Tenaya Therapeutics 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 Tenaya Therapeutics and Bicycle Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaya Therapeutics and Bicycle Therapeutics, you can compare the effects of market volatilities on Tenaya Therapeutics 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 Tenaya Therapeutics with a short position of Bicycle Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaya Therapeutics and Bicycle Therapeutics.
Diversification Opportunities for Tenaya Therapeutics and Bicycle Therapeutics
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tenaya and Bicycle is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tenaya Therapeutics and Bicycle Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bicycle Therapeutics and Tenaya 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 Tenaya Therapeutics 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 Tenaya Therapeutics i.e., Tenaya Therapeutics and Bicycle Therapeutics go up and down completely randomly.
Pair Corralation between Tenaya Therapeutics and Bicycle Therapeutics
Given the investment horizon of 90 days Tenaya Therapeutics is expected to generate 4.09 times more return on investment than Bicycle Therapeutics. However, Tenaya Therapeutics is 4.09 times more volatile than Bicycle Therapeutics. It trades about 0.21 of its potential returns per unit of risk. Bicycle Therapeutics is currently generating about -0.41 per unit of risk. If you would invest 208.00 in Tenaya Therapeutics on August 28, 2024 and sell it today you would earn a total of 88.00 from holding Tenaya Therapeutics or generate 42.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tenaya Therapeutics vs. Bicycle Therapeutics
Performance |
| Timeline |
| Tenaya Therapeutics |
| Bicycle Therapeutics |
Tenaya Therapeutics and Bicycle Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaya Therapeutics and Bicycle Therapeutics
The main advantage of trading using opposite Tenaya Therapeutics and Bicycle Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaya Therapeutics 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.| Tenaya Therapeutics vs. Bicycle Therapeutics | Tenaya Therapeutics vs. IGM Biosciences | Tenaya Therapeutics vs. Monte Rosa Therapeutics | Tenaya Therapeutics vs. Stoke Therapeutics |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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