Correlation Between Bristol Myers and Aptose Biosciences
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Aptose Biosciences 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 Aptose Biosciences 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 Aptose Biosciences, you can compare the effects of market volatilities on Bristol Myers and Aptose Biosciences 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 Aptose Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Aptose Biosciences.
Diversification Opportunities for Bristol Myers and Aptose Biosciences
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bristol and Aptose is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences 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 Aptose Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptose Biosciences has no effect on the direction of Bristol Myers i.e., Bristol Myers and Aptose Biosciences go up and down completely randomly.
Pair Corralation between Bristol Myers and Aptose Biosciences
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.31 times more return on investment than Aptose Biosciences. However, Bristol Myers Squibb is 3.24 times less risky than Aptose Biosciences. It trades about 0.0 of its potential returns per unit of risk. Aptose Biosciences is currently generating about -0.15 per unit of risk. If you would invest 6,100 in Bristol Myers Squibb on August 31, 2024 and sell it today you would lose (178.00) from holding Bristol Myers Squibb or give up 2.92% 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. Aptose Biosciences
Performance |
| Timeline |
| Bristol Myers Squibb |
| Aptose Biosciences |
Bristol Myers and Aptose Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Aptose Biosciences
The main advantage of trading using opposite Bristol Myers and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Aptose Biosciences 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 Aptose Biosciences will offset losses from the drop in Aptose Biosciences' long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
| Aptose Biosciences vs. CytomX Therapeutics | Aptose Biosciences vs. Instil Bio | Aptose Biosciences vs. Spero Therapeutics | Aptose Biosciences vs. Assembly Biosciences |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |