Correlation Between Bicycle Therapeutics and Acrivon Therapeutics,

Can any of the company-specific risk be diversified away by investing in both Bicycle Therapeutics and Acrivon 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 Bicycle Therapeutics and Acrivon Therapeutics, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bicycle Therapeutics and Acrivon Therapeutics, Common, you can compare the effects of market volatilities on Bicycle Therapeutics and Acrivon 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 Bicycle Therapeutics with a short position of Acrivon Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bicycle Therapeutics and Acrivon Therapeutics,.

Diversification Opportunities for Bicycle Therapeutics and Acrivon Therapeutics,

0.36

Correlation Coefficient

Bicycle Therapeutics  Acrivon Therapeutics,

Weak diversification

The 3 months correlation between Bicycle and Acrivon is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bicycle Therapeutics and Acrivon Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrivon Therapeutics, 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 Acrivon Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrivon Therapeutics, has no effect on the direction of Bicycle Therapeutics i.e., Bicycle Therapeutics and Acrivon Therapeutics, go up and down completely randomly.

Pair Corralation between Bicycle Therapeutics and Acrivon Therapeutics,

Given the investment horizon of 90 days Bicycle Therapeutics is expected to generate 1.14 times more return on investment than Acrivon Therapeutics,. However, Bicycle Therapeutics is 1.14 times more volatile than Acrivon Therapeutics, Common. It trades about 0.01 of its potential returns per unit of risk. Acrivon Therapeutics, Common is currently generating about -0.02 per unit of risk. If you would invest  2,059  in Bicycle Therapeutics on September 4, 2024 and sell it today you would lose (58.00) from holding Bicycle Therapeutics or give up 2.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Bicycle Therapeutics  vs.  Acrivon Therapeutics, Common

Bicycle Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bicycle Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Bicycle Therapeutics is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Acrivon Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acrivon Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Acrivon Therapeutics, is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Bicycle Therapeutics and Acrivon Therapeutics,

The main advantage of trading using opposite Bicycle Therapeutics and Acrivon Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bicycle Therapeutics position performs unexpectedly, Acrivon 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 Acrivon Therapeutics, will offset losses from the drop in Acrivon Therapeutics,'s long position.

The idea behind Bicycle Therapeutics and Acrivon Therapeutics, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.