Correlation Between Bristol Myers and Lipella Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Lipella 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 Lipella 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 Lipella Pharmaceuticals Common, you can compare the effects of market volatilities on Bristol Myers and Lipella 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 Lipella Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Lipella Pharmaceuticals.
Diversification Opportunities for Bristol Myers and Lipella Pharmaceuticals
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bristol and Lipella is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Lipella Pharmaceuticals Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipella 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 Lipella Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipella Pharmaceuticals has no effect on the direction of Bristol Myers i.e., Bristol Myers and Lipella Pharmaceuticals go up and down completely randomly.
Pair Corralation between Bristol Myers and Lipella Pharmaceuticals
Considering the 90-day investment horizon Bristol Myers Squibb is expected to under-perform the Lipella Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Bristol Myers Squibb is 11.91 times less risky than Lipella Pharmaceuticals. The stock trades about -0.11 of its potential returns per unit of risk. The Lipella Pharmaceuticals Common is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 272.00 in Lipella Pharmaceuticals Common on November 27, 2024 and sell it today you would earn a total of 28.00 from holding Lipella Pharmaceuticals Common or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Lipella Pharmaceuticals Common
Performance |
| Timeline |
| Bristol Myers Squibb |
| Lipella Pharmaceuticals |
Bristol Myers and Lipella Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Lipella Pharmaceuticals
The main advantage of trading using opposite Bristol Myers and Lipella Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Lipella 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 Lipella Pharmaceuticals will offset losses from the drop in Lipella Pharmaceuticals' long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
| Lipella Pharmaceuticals vs. Senti Biosciences | Lipella Pharmaceuticals vs. Fennec Pharmaceuticals | Lipella Pharmaceuticals vs. Monopar Therapeutics | Lipella Pharmaceuticals vs. Akeso, Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |