Correlation Between BioCryst Pharmaceuticals and Dow Jones
Can any of the company-specific risk be diversified away by investing in both BioCryst Pharmaceuticals and Dow Jones 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 BioCryst Pharmaceuticals and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioCryst Pharmaceuticals and Dow Jones Industrial, you can compare the effects of market volatilities on BioCryst Pharmaceuticals and Dow Jones 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 BioCryst Pharmaceuticals with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioCryst Pharmaceuticals and Dow Jones.
Diversification Opportunities for BioCryst Pharmaceuticals and Dow Jones
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioCryst and Dow is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BioCryst Pharmaceuticals and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of BioCryst Pharmaceuticals i.e., BioCryst Pharmaceuticals and Dow Jones go up and down completely randomly.
Pair Corralation between BioCryst Pharmaceuticals and Dow Jones
Given the investment horizon of 90 days BioCryst Pharmaceuticals is expected to generate 16.44 times less return on investment than Dow Jones. In addition to that, BioCryst Pharmaceuticals is 5.28 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,378,148 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 1,094,058 from holding Dow Jones Industrial or generate 32.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioCryst Pharmaceuticals vs. Dow Jones Industrial
Performance |
| Timeline |
BioCryst Pharmaceuticals and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BioCryst Pharmaceuticals
Pair trading matchups for BioCryst Pharmaceuticals
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BioCryst Pharmaceuticals and Dow Jones
The main advantage of trading using opposite BioCryst Pharmaceuticals and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioCryst Pharmaceuticals position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| BioCryst Pharmaceuticals vs. TG Therapeutics | BioCryst Pharmaceuticals vs. Axsome Therapeutics | BioCryst Pharmaceuticals vs. Seres Therapeutics | BioCryst Pharmaceuticals vs. Madrigal Pharmaceuticals |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |