Correlation Between Bristol Myers and Agenus
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Agenus 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 Bristol Myers and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bristol Myers Squibb and Agenus Inc, you can compare the effects of market volatilities on Bristol Myers and Agenus 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 Bristol Myers with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Agenus.
Diversification Opportunities for Bristol Myers and Agenus
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and Agenus is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Bristol Myers 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 Bristol Myers Squibb are associated (or correlated) with Agenus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agenus Inc has no effect on the direction of Bristol Myers i.e., Bristol Myers and Agenus go up and down completely randomly.
Pair Corralation between Bristol Myers and Agenus
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.38 times more return on investment than Agenus. However, Bristol Myers Squibb is 2.62 times less risky than Agenus. It trades about 0.17 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.08 per unit of risk. If you would invest 5,432 in Bristol Myers Squibb on September 2, 2024 and sell it today you would earn a total of 490.00 from holding Bristol Myers Squibb or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Agenus Inc
Performance |
| Timeline |
| Bristol Myers Squibb |
| Agenus Inc |
Bristol Myers and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Agenus
The main advantage of trading using opposite Bristol Myers and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Agenus 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 Agenus will offset losses from the drop in Agenus' long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
| Agenus vs. Tff Pharmaceuticals | Agenus vs. Eliem Therapeutics | Agenus vs. Inhibrx | Agenus vs. Enliven Therapeutics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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