Correlation Between Adicet Bio and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Adicet Bio and Bristol Myers 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 Adicet Bio and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adicet Bio and Bristol Myers Squibb, you can compare the effects of market volatilities on Adicet Bio and Bristol Myers 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 Adicet Bio with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adicet Bio and Bristol Myers.
Diversification Opportunities for Adicet Bio and Bristol Myers
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Adicet and Bristol is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Adicet Bio and Bristol Myers Squibb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristol Myers Squibb and Adicet Bio 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 Adicet Bio are associated (or correlated) with Bristol Myers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bristol Myers Squibb has no effect on the direction of Adicet Bio i.e., Adicet Bio and Bristol Myers go up and down completely randomly.
Pair Corralation between Adicet Bio and Bristol Myers
Given the investment horizon of 90 days Adicet Bio is expected to under-perform the Bristol Myers. In addition to that, Adicet Bio is 2.63 times more volatile than Bristol Myers Squibb. It trades about -0.06 of its total potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.05 per unit of volatility. If you would invest 4,762 in Bristol Myers Squibb on November 9, 2024 and sell it today you would earn a total of 980.00 from holding Bristol Myers Squibb or generate 20.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adicet Bio vs. Bristol Myers Squibb
Performance |
| Timeline |
| Adicet Bio |
| Bristol Myers Squibb |
Adicet Bio and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adicet Bio and Bristol Myers
The main advantage of trading using opposite Adicet Bio and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adicet Bio position performs unexpectedly, Bristol Myers 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 Bristol Myers will offset losses from the drop in Bristol Myers' long position.| Adicet Bio vs. Edgewise Therapeutics | Adicet Bio vs. Cullinan Oncology LLC | Adicet Bio vs. Vor Biopharma | Adicet Bio vs. Tenaya Therapeutics |
| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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