Correlation Between Bristol Myers and Estrella Immunopharma
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Estrella Immunopharma 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 Estrella Immunopharma 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 Estrella Immunopharma, you can compare the effects of market volatilities on Bristol Myers and Estrella Immunopharma 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 Estrella Immunopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Estrella Immunopharma.
Diversification Opportunities for Bristol Myers and Estrella Immunopharma
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bristol and Estrella is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Estrella Immunopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estrella Immunopharma 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 Estrella Immunopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estrella Immunopharma has no effect on the direction of Bristol Myers i.e., Bristol Myers and Estrella Immunopharma go up and down completely randomly.
Pair Corralation between Bristol Myers and Estrella Immunopharma
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.18 times more return on investment than Estrella Immunopharma. However, Bristol Myers Squibb is 5.47 times less risky than Estrella Immunopharma. It trades about 0.02 of its potential returns per unit of risk. Estrella Immunopharma is currently generating about -0.02 per unit of risk. If you would invest 5,730 in Bristol Myers Squibb on September 3, 2024 and sell it today you would earn a total of 264.00 from holding Bristol Myers Squibb or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Estrella Immunopharma
Performance |
| Timeline |
| Bristol Myers Squibb |
| Estrella Immunopharma |
Bristol Myers and Estrella Immunopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Estrella Immunopharma
The main advantage of trading using opposite Bristol Myers and Estrella Immunopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Estrella Immunopharma 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 Estrella Immunopharma will offset losses from the drop in Estrella Immunopharma's long position.| Bristol Myers vs. Pfizer Inc | Bristol Myers vs. Johnson Johnson | Bristol Myers vs. Highway Holdings Limited | Bristol Myers vs. QCR Holdings |
| Estrella Immunopharma vs. DiaMedica Therapeutics | Estrella Immunopharma vs. Lyra Therapeutics | Estrella Immunopharma vs. Centessa Pharmaceuticals PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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