Correlation Between Aptose Biosciences and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences 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 Aptose Biosciences and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptose Biosciences and Bristol Myers Squibb, you can compare the effects of market volatilities on Aptose Biosciences 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 Aptose Biosciences with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and Bristol Myers.
Diversification Opportunities for Aptose Biosciences and Bristol Myers
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aptose and Bristol is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences 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 Aptose Biosciences 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 Aptose Biosciences 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 Aptose Biosciences i.e., Aptose Biosciences and Bristol Myers go up and down completely randomly.
Pair Corralation between Aptose Biosciences and Bristol Myers
Given the investment horizon of 90 days Aptose Biosciences is expected to under-perform the Bristol Myers. In addition to that, Aptose Biosciences is 3.4 times more volatile than Bristol Myers Squibb. It trades about -0.12 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptose Biosciences vs. Bristol Myers Squibb
Performance |
| Timeline |
| Aptose Biosciences |
| Bristol Myers Squibb |
Aptose Biosciences and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptose Biosciences and Bristol Myers
The main advantage of trading using opposite Aptose Biosciences and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences 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.| Aptose Biosciences vs. CytomX Therapeutics | Aptose Biosciences vs. Instil Bio | Aptose Biosciences vs. Spero Therapeutics | Aptose Biosciences vs. Assembly Biosciences |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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