Correlation Between Bristol Myers and Seer
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Seer 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 Seer 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 Seer Inc, you can compare the effects of market volatilities on Bristol Myers and Seer 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 Seer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Seer.
Diversification Opportunities for Bristol Myers and Seer
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bristol and Seer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Seer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seer Inc 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 Seer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seer Inc has no effect on the direction of Bristol Myers i.e., Bristol Myers and Seer go up and down completely randomly.
Pair Corralation between Bristol Myers and Seer
Considering the 90-day investment horizon Bristol Myers is expected to generate 2.46 times less return on investment than Seer. But when comparing it to its historical volatility, Bristol Myers Squibb is 2.06 times less risky than Seer. It trades about 0.05 of its potential returns per unit of risk. Seer Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Seer Inc on August 25, 2024 and sell it today you would earn a total of 74.00 from holding Seer Inc or generate 43.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Seer Inc
Performance |
| Timeline |
| Bristol Myers Squibb |
| Seer Inc |
Bristol Myers and Seer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Seer
The main advantage of trading using opposite Bristol Myers and Seer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Seer 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 Seer will offset losses from the drop in Seer's long position.| Bristol Myers vs. Capricor Therapeutics | Bristol Myers vs. Akari Therapeutics PLC | Bristol Myers vs. Soleno Therapeutics | Bristol Myers vs. Bio Path Holdings |
| Seer vs. Oric Pharmaceuticals | Seer vs. Anebulo Pharmaceuticals | Seer vs. Cullinan Oncology LLC | Seer vs. C4 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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