Correlation Between Bristol Myers and Silence Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Silence 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 Silence 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 Silence Therapeutics PLC, you can compare the effects of market volatilities on Bristol Myers and Silence 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 Silence Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Silence Therapeutics.
Diversification Opportunities for Bristol Myers and Silence Therapeutics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and Silence is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Silence Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silence Therapeutics PLC 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 Silence Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silence Therapeutics PLC has no effect on the direction of Bristol Myers i.e., Bristol Myers and Silence Therapeutics go up and down completely randomly.
Pair Corralation between Bristol Myers and Silence Therapeutics
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.43 times more return on investment than Silence Therapeutics. However, Bristol Myers Squibb is 2.32 times less risky than Silence Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Silence Therapeutics PLC is currently generating about -0.04 per unit of risk. If you would invest 4,775 in Bristol Myers Squibb on September 2, 2024 and sell it today you would earn a total of 1,147 from holding Bristol Myers Squibb or generate 24.02% 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. Silence Therapeutics PLC
Performance |
| Timeline |
| Bristol Myers Squibb |
| Silence Therapeutics PLC |
Bristol Myers and Silence Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Silence Therapeutics
The main advantage of trading using opposite Bristol Myers and Silence Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Silence 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 Silence Therapeutics will offset losses from the drop in Silence Therapeutics' long position.| Bristol Myers vs. AbbVie Inc | Bristol Myers vs. Merck Company | Bristol Myers vs. Gilead Sciences | Bristol Myers vs. Johnson Johnson |
| Silence Therapeutics vs. Tff Pharmaceuticals | Silence Therapeutics vs. Eliem Therapeutics | Silence Therapeutics vs. Inhibrx | Silence Therapeutics 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |