Correlation Between Bristol Myers and Curis
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Curis 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 Curis 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 Curis Inc, you can compare the effects of market volatilities on Bristol Myers and Curis 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 Curis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Curis.
Diversification Opportunities for Bristol Myers and Curis
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bristol and Curis is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis 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 Curis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curis Inc has no effect on the direction of Bristol Myers i.e., Bristol Myers and Curis go up and down completely randomly.
Pair Corralation between Bristol Myers and Curis
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.27 times more return on investment than Curis. However, Bristol Myers Squibb is 3.77 times less risky than Curis. It trades about -0.01 of its potential returns per unit of risk. Curis Inc is currently generating about -0.02 per unit of risk. If you would invest 6,493 in Bristol Myers Squibb on November 27, 2024 and sell it today you would lose (705.00) from holding Bristol Myers Squibb or give up 10.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Curis Inc
Performance |
| Timeline |
| Bristol Myers Squibb |
| Curis Inc |
Bristol Myers and Curis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Curis
The main advantage of trading using opposite Bristol Myers and Curis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Curis 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 Curis will offset losses from the drop in Curis' long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
| Curis vs. Artelo Biosciences | Curis vs. X4 Pharmaceuticals | Curis vs. Mereo BioPharma Group | Curis vs. Inozyme Pharma |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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