Correlation Between Bristol Myers and Synlogic
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Synlogic 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 Synlogic 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 Synlogic, you can compare the effects of market volatilities on Bristol Myers and Synlogic 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 Synlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Synlogic.
Diversification Opportunities for Bristol Myers and Synlogic
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bristol and Synlogic is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Synlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synlogic 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 Synlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synlogic has no effect on the direction of Bristol Myers i.e., Bristol Myers and Synlogic go up and down completely randomly.
Pair Corralation between Bristol Myers and Synlogic
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 1.13 times more return on investment than Synlogic. However, Bristol Myers is 1.13 times more volatile than Synlogic. It trades about 0.12 of its potential returns per unit of risk. Synlogic is currently generating about -0.03 per unit of risk. If you would invest 5,577 in Bristol Myers Squibb on September 1, 2024 and sell it today you would earn a total of 345.00 from holding Bristol Myers Squibb or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Synlogic
Performance |
| Timeline |
| Bristol Myers Squibb |
| Synlogic |
Bristol Myers and Synlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Synlogic
The main advantage of trading using opposite Bristol Myers and Synlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Synlogic 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 Synlogic will offset losses from the drop in Synlogic's long position.| Bristol Myers vs. Crinetics Pharmaceuticals | Bristol Myers vs. Enanta Pharmaceuticals | Bristol Myers vs. Amicus Therapeutics | Bristol Myers vs. Connect Biopharma Holdings |
| Synlogic vs. AC Immune | Synlogic vs. Protara Therapeutics | Synlogic vs. Vaccinex | Synlogic vs. Monopar 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| CEOs Directory Screen CEOs from public companies around the world |