Correlation Between Halozyme Therapeutics and FIXX Old

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

By analyzing existing cross correlation between Halozyme Therapeutics and FIXX Old, you can compare the effects of market volatilities on Halozyme Therapeutics and FIXX Old 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 FIXX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halozyme Therapeutics and FIXX Old.

Diversification Opportunities for Halozyme Therapeutics and FIXX Old

0.26

Correlation Coefficient

Halozyme Therapeutics  FIXX Old

Modest diversification

The 3 months correlation between Halozyme and FIXX is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Halozyme Therapeutics and FIXX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIXX Old 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 FIXX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIXX Old has no effect on the direction of Halozyme Therapeutics i.e., Halozyme Therapeutics and FIXX Old go up and down completely randomly.

Pair Corralation between Halozyme Therapeutics and FIXX Old

Given the investment horizon of 90 days Halozyme Therapeutics is expected to generate 9.16 times less return on investment than FIXX Old. But when comparing it to its historical volatility, Halozyme Therapeutics is 1.57 times less risky than FIXX Old. It trades about 0.05 of its potential returns per unit of risk. FIXX Old is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  89.00  in FIXX Old on October 22, 2024 and sell it today you would earn a total of  20.00  from holding FIXX Old or generate 22.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.35%
Values	Daily Returns

Halozyme Therapeutics  vs.  FIXX Old

Halozyme Therapeutics

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Halozyme Therapeutics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, Halozyme Therapeutics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

FIXX Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIXX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, FIXX Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Halozyme Therapeutics and FIXX Old

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

The idea behind Halozyme Therapeutics and FIXX Old 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.