Correlation Between Bristol Myers and Lexeo Therapeutics,
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Lexeo Therapeutics, 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 Lexeo Therapeutics, 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 Lexeo Therapeutics, Common, you can compare the effects of market volatilities on Bristol Myers and Lexeo Therapeutics, 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 Lexeo Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Lexeo Therapeutics,.
Diversification Opportunities for Bristol Myers and Lexeo Therapeutics,
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bristol and Lexeo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Lexeo Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexeo Therapeutics, 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 Lexeo Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexeo Therapeutics, has no effect on the direction of Bristol Myers i.e., Bristol Myers and Lexeo Therapeutics, go up and down completely randomly.
Pair Corralation between Bristol Myers and Lexeo Therapeutics,
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.31 times more return on investment than Lexeo Therapeutics,. However, Bristol Myers Squibb is 3.27 times less risky than Lexeo Therapeutics,. It trades about 0.04 of its potential returns per unit of risk. Lexeo Therapeutics, Common is currently generating about -0.18 per unit of risk. If you would invest 5,681 in Bristol Myers Squibb on November 9, 2024 and sell it today you would earn a total of 61.00 from holding Bristol Myers Squibb or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Lexeo Therapeutics, Common
Performance |
| Timeline |
| Bristol Myers Squibb |
| Lexeo Therapeutics, |
Bristol Myers and Lexeo Therapeutics, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Lexeo Therapeutics,
The main advantage of trading using opposite Bristol Myers and Lexeo Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Lexeo Therapeutics, 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 Lexeo Therapeutics, will offset losses from the drop in Lexeo Therapeutics,'s long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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