Correlation Between Bristol Myers and OncoCyte Corp
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and OncoCyte Corp 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 OncoCyte Corp 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 OncoCyte Corp, you can compare the effects of market volatilities on Bristol Myers and OncoCyte Corp 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 OncoCyte Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and OncoCyte Corp.
Diversification Opportunities for Bristol Myers and OncoCyte Corp
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and OncoCyte is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and OncoCyte Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OncoCyte Corp 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 OncoCyte Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OncoCyte Corp has no effect on the direction of Bristol Myers i.e., Bristol Myers and OncoCyte Corp go up and down completely randomly.
Pair Corralation between Bristol Myers and OncoCyte Corp
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.65 times more return on investment than OncoCyte Corp. However, Bristol Myers Squibb is 1.54 times less risky than OncoCyte Corp. It trades about 0.15 of its potential returns per unit of risk. OncoCyte Corp is currently generating about -0.01 per unit of risk. If you would invest 4,069 in Bristol Myers Squibb on September 1, 2024 and sell it today you would earn a total of 1,853 from holding Bristol Myers Squibb or generate 45.54% 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. OncoCyte Corp
Performance |
Timeline |
Bristol Myers Squibb |
OncoCyte Corp |
Bristol Myers and OncoCyte Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bristol Myers and OncoCyte Corp
The main advantage of trading using opposite Bristol Myers and OncoCyte Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, OncoCyte Corp 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 OncoCyte Corp will offset losses from the drop in OncoCyte Corp's long position.Bristol Myers vs. Crinetics Pharmaceuticals | Bristol Myers vs. Enanta Pharmaceuticals | Bristol Myers vs. Amicus Therapeutics | Bristol Myers vs. Connect Biopharma Holdings |
OncoCyte Corp vs. Tff Pharmaceuticals | OncoCyte Corp vs. Eliem Therapeutics | OncoCyte Corp vs. Inhibrx | OncoCyte Corp vs. Enliven Therapeutics |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |