Correlation Between Bristol Myers and Myriad Genetics
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Myriad Genetics 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 Myriad Genetics 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 Myriad Genetics, you can compare the effects of market volatilities on Bristol Myers and Myriad Genetics 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 Myriad Genetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Myriad Genetics.
Diversification Opportunities for Bristol Myers and Myriad Genetics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bristol and Myriad is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Myriad Genetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myriad Genetics 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 Myriad Genetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myriad Genetics has no effect on the direction of Bristol Myers i.e., Bristol Myers and Myriad Genetics go up and down completely randomly.
Pair Corralation between Bristol Myers and Myriad Genetics
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.48 times more return on investment than Myriad Genetics. However, Bristol Myers Squibb is 2.09 times less risky than Myriad Genetics. It trades about 0.16 of its potential returns per unit of risk. Myriad Genetics is currently generating about -0.14 per unit of risk. If you would invest 5,668 in Bristol Myers Squibb on November 5, 2024 and sell it today you would earn a total of 227.00 from holding Bristol Myers Squibb or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Myriad Genetics
Performance |
| Timeline |
| Bristol Myers Squibb |
| Myriad Genetics |
Bristol Myers and Myriad Genetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Myriad Genetics
The main advantage of trading using opposite Bristol Myers and Myriad Genetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Myriad Genetics 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 Myriad Genetics will offset losses from the drop in Myriad Genetics' long position.| Bristol Myers vs. Agilent Technologies | Bristol Myers vs. Equillium | Bristol Myers vs. 23Andme Holding Co | Bristol Myers vs. DiaMedica Therapeutics |
| Myriad Genetics vs. Guardant Health | Myriad Genetics vs. Caredx Inc | Myriad Genetics vs. Castle Biosciences | Myriad Genetics vs. Sotera Health Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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