Correlation Between Akari Therapeutics and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Akari Therapeutics 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 Akari Therapeutics and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akari Therapeutics PLC and Bristol Myers Squibb, you can compare the effects of market volatilities on Akari Therapeutics 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 Akari Therapeutics with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akari Therapeutics and Bristol Myers.
Diversification Opportunities for Akari Therapeutics and Bristol Myers
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akari and Bristol is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Akari Therapeutics PLC 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 Akari 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 Akari Therapeutics PLC 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 Akari Therapeutics i.e., Akari Therapeutics and Bristol Myers go up and down completely randomly.
Pair Corralation between Akari Therapeutics and Bristol Myers
Given the investment horizon of 90 days Akari Therapeutics PLC is expected to under-perform the Bristol Myers. In addition to that, Akari Therapeutics is 3.12 times more volatile than Bristol Myers Squibb. It trades about -0.21 of its total potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.16 per unit of volatility. If you would invest 5,292 in Bristol Myers Squibb on August 25, 2024 and sell it today you would earn a total of 531.00 from holding Bristol Myers Squibb or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Akari Therapeutics PLC vs. Bristol Myers Squibb
Performance |
| Timeline |
| Akari Therapeutics PLC |
| Bristol Myers Squibb |
Akari Therapeutics and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akari Therapeutics and Bristol Myers
The main advantage of trading using opposite Akari Therapeutics and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akari Therapeutics 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.| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius Pharmaceuticals |
| Bristol Myers vs. Capricor Therapeutics | Bristol Myers vs. Akari Therapeutics PLC | Bristol Myers vs. Soleno Therapeutics | Bristol Myers vs. Bio Path Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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