Correlation Between Bristol Myers and Annovis Bio
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Annovis Bio 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 Annovis Bio 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 Annovis Bio, you can compare the effects of market volatilities on Bristol Myers and Annovis Bio 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 Annovis Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Annovis Bio.
Diversification Opportunities for Bristol Myers and Annovis Bio
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bristol and Annovis is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Annovis Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annovis Bio 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 Annovis Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annovis Bio has no effect on the direction of Bristol Myers i.e., Bristol Myers and Annovis Bio go up and down completely randomly.
Pair Corralation between Bristol Myers and Annovis Bio
Considering the 90-day investment horizon Bristol Myers is expected to generate 3.59 times less return on investment than Annovis Bio. But when comparing it to its historical volatility, Bristol Myers Squibb is 5.42 times less risky than Annovis Bio. It trades about 0.06 of its potential returns per unit of risk. Annovis Bio is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 906.00 in Annovis Bio on September 1, 2024 and sell it today you would lose (235.00) from holding Annovis Bio or give up 25.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Annovis Bio
Performance |
| Timeline |
| Bristol Myers Squibb |
| Annovis Bio |
Bristol Myers and Annovis Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Annovis Bio
The main advantage of trading using opposite Bristol Myers and Annovis Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Annovis Bio 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 Annovis Bio will offset losses from the drop in Annovis Bio's long position.| Bristol Myers vs. Crinetics Pharmaceuticals | Bristol Myers vs. Enanta Pharmaceuticals | Bristol Myers vs. Amicus Therapeutics | Bristol Myers vs. Connect Biopharma Holdings |
| Annovis Bio vs. Cassava Sciences | Annovis Bio vs. Axsome Therapeutics | Annovis Bio vs. Reviva Pharmaceuticals Holdings | Annovis Bio vs. Seres 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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