Correlation Between Bristol Myers and Corbus Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Corbus Pharmaceuticals 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 Corbus Pharmaceuticals 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 Corbus Pharmaceuticals Holding, you can compare the effects of market volatilities on Bristol Myers and Corbus Pharmaceuticals 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 Corbus Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Corbus Pharmaceuticals.
Diversification Opportunities for Bristol Myers and Corbus Pharmaceuticals
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and Corbus is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Corbus Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corbus Pharmaceuticals 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 Corbus Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corbus Pharmaceuticals has no effect on the direction of Bristol Myers i.e., Bristol Myers and Corbus Pharmaceuticals go up and down completely randomly.
Pair Corralation between Bristol Myers and Corbus Pharmaceuticals
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.28 times more return on investment than Corbus Pharmaceuticals. However, Bristol Myers Squibb is 3.54 times less risky than Corbus Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Corbus Pharmaceuticals Holding is currently generating about -0.01 per unit of risk. If you would invest 4,990 in Bristol Myers Squibb on September 1, 2024 and sell it today you would earn a total of 932.00 from holding Bristol Myers Squibb or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Corbus Pharmaceuticals Holding
Performance |
| Timeline |
| Bristol Myers Squibb |
| Corbus Pharmaceuticals |
Bristol Myers and Corbus Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Corbus Pharmaceuticals
The main advantage of trading using opposite Bristol Myers and Corbus Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Corbus Pharmaceuticals 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 Corbus Pharmaceuticals will offset losses from the drop in Corbus Pharmaceuticals' long position.| Bristol Myers vs. Crinetics Pharmaceuticals | Bristol Myers vs. Enanta Pharmaceuticals | Bristol Myers vs. Amicus Therapeutics | Bristol Myers vs. Connect Biopharma Holdings |
| Corbus Pharmaceuticals vs. Trevi Therapeutics | Corbus Pharmaceuticals vs. Cue Biopharma | Corbus Pharmaceuticals vs. AN2 Therapeutics | Corbus Pharmaceuticals vs. Bioatla |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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