Correlation Between Halozyme Therapeutics and Bicycle Therapeutics

Can any of the company-specific risk be diversified away by investing in both Halozyme 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 Halozyme 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 Halozyme Therapeutics and Bicycle Therapeutics, you can compare the effects of market volatilities on Halozyme 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 Halozyme Therapeutics with a short position of Bicycle Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halozyme Therapeutics and Bicycle Therapeutics.

Diversification Opportunities for Halozyme Therapeutics and Bicycle Therapeutics

0.27

Correlation Coefficient

Halozyme Therapeutics  Bicycle Therapeutics

Modest diversification

The 3 months correlation between Halozyme and Bicycle is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Halozyme Therapeutics and Bicycle Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bicycle Therapeutics and Halozyme 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 Halozyme 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 Halozyme Therapeutics i.e., Halozyme Therapeutics and Bicycle Therapeutics go up and down completely randomly.

Pair Corralation between Halozyme Therapeutics and Bicycle Therapeutics

Given the investment horizon of 90 days Halozyme Therapeutics is expected to under-perform the Bicycle Therapeutics. In addition to that, Halozyme Therapeutics is 1.14 times more volatile than Bicycle Therapeutics. It trades about -0.05 of its total potential returns per unit of risk. Bicycle Therapeutics is currently generating about 0.03 per unit of volatility. If you would invest  778.00  in Bicycle Therapeutics on May 7, 2025 and sell it today you would earn a total of  27.00  from holding Bicycle Therapeutics or generate 3.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Halozyme Therapeutics  vs.  Bicycle Therapeutics

Halozyme Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Halozyme Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Bicycle Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bicycle Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Bicycle Therapeutics may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Halozyme Therapeutics and Bicycle Therapeutics

The main advantage of trading using opposite Halozyme Therapeutics and Bicycle Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halozyme 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.

The idea behind Halozyme Therapeutics and Bicycle Therapeutics 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 CEOs Directory module to screen CEOs from public companies around the world.