Correlation Between Bristol Myers and Allovir
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Allovir 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 Allovir 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 Allovir, you can compare the effects of market volatilities on Bristol Myers and Allovir 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 Allovir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Allovir.
Diversification Opportunities for Bristol Myers and Allovir
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bristol and Allovir is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Allovir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allovir 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 Allovir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allovir has no effect on the direction of Bristol Myers i.e., Bristol Myers and Allovir go up and down completely randomly.
Pair Corralation between Bristol Myers and Allovir
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.23 times more return on investment than Allovir. However, Bristol Myers Squibb is 4.3 times less risky than Allovir. It trades about 0.17 of its potential returns per unit of risk. Allovir is currently generating about -0.16 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Allovir
Performance |
| Timeline |
| Bristol Myers Squibb |
| Allovir |
Bristol Myers and Allovir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Allovir
The main advantage of trading using opposite Bristol Myers and Allovir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Allovir 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 Allovir will offset losses from the drop in Allovir's long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
| Allovir vs. Anebulo Pharmaceuticals | Allovir vs. Mineralys Therapeutics, Common | Allovir vs. AN2 Therapeutics | Allovir vs. Aerovate 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |