Correlation Between Bristol Myers and Histogen
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Histogen 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 Histogen 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 Histogen, you can compare the effects of market volatilities on Bristol Myers and Histogen 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 Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Histogen.
Diversification Opportunities for Bristol Myers and Histogen
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bristol and Histogen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen 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 Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Bristol Myers i.e., Bristol Myers and Histogen go up and down completely randomly.
Pair Corralation between Bristol Myers and Histogen
If you would invest 2.70 in Histogen on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Histogen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 15.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Histogen
Performance |
| Timeline |
| Bristol Myers Squibb |
| Histogen |
Risk-Adjusted Performance
OK
Weak | Strong |
Bristol Myers and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Histogen
The main advantage of trading using opposite Bristol Myers and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
| Histogen vs. Virax Biolabs Group | Histogen vs. Artelo Biosciences | Histogen vs. Curis Inc | Histogen vs. SAB Biotherapeutics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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