Correlation Between Bristol Myers and COSCIENS Biopharma
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and COSCIENS Biopharma 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 COSCIENS Biopharma 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 COSCIENS Biopharma, you can compare the effects of market volatilities on Bristol Myers and COSCIENS Biopharma 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 COSCIENS Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and COSCIENS Biopharma.
Diversification Opportunities for Bristol Myers and COSCIENS Biopharma
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and COSCIENS is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and COSCIENS Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCIENS Biopharma 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 COSCIENS Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCIENS Biopharma has no effect on the direction of Bristol Myers i.e., Bristol Myers and COSCIENS Biopharma go up and down completely randomly.
Pair Corralation between Bristol Myers and COSCIENS Biopharma
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.36 times more return on investment than COSCIENS Biopharma. However, Bristol Myers Squibb is 2.78 times less risky than COSCIENS Biopharma. It trades about -0.02 of its potential returns per unit of risk. COSCIENS Biopharma is currently generating about -0.05 per unit of risk. If you would invest 7,109 in Bristol Myers Squibb on September 3, 2024 and sell it today you would lose (1,187) from holding Bristol Myers Squibb or give up 16.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. COSCIENS Biopharma
Performance |
| Timeline |
| Bristol Myers Squibb |
| COSCIENS Biopharma |
Bristol Myers and COSCIENS Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and COSCIENS Biopharma
The main advantage of trading using opposite Bristol Myers and COSCIENS Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, COSCIENS Biopharma 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 COSCIENS Biopharma will offset losses from the drop in COSCIENS Biopharma's long position.| Bristol Myers vs. Pfizer Inc | Bristol Myers vs. Johnson Johnson | Bristol Myers vs. Highway Holdings Limited | Bristol Myers vs. QCR Holdings |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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