Correlation Between MaxCyte and Bristol-Myers Squibb
Can any of the company-specific risk be diversified away by investing in both MaxCyte and Bristol-Myers Squibb 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 MaxCyte and Bristol-Myers Squibb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxCyte and Bristol Myers Squibb, you can compare the effects of market volatilities on MaxCyte and Bristol-Myers Squibb 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 MaxCyte with a short position of Bristol-Myers Squibb. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxCyte and Bristol-Myers Squibb.
Diversification Opportunities for MaxCyte and Bristol-Myers Squibb
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MaxCyte and Bristol-Myers is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and Bristol Myers Squibb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristol Myers Squibb and MaxCyte 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 MaxCyte are associated (or correlated) with Bristol-Myers Squibb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bristol Myers Squibb has no effect on the direction of MaxCyte i.e., MaxCyte and Bristol-Myers Squibb go up and down completely randomly.
Pair Corralation between MaxCyte and Bristol-Myers Squibb
Given the investment horizon of 90 days MaxCyte is expected to under-perform the Bristol-Myers Squibb. But the stock apears to be less risky and, when comparing its historical volatility, MaxCyte is 1.53 times less risky than Bristol-Myers Squibb. The stock trades about -0.57 of its potential returns per unit of risk. The Bristol Myers Squibb is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 94,552 in Bristol Myers Squibb on November 29, 2024 and sell it today you would lose (4,497) from holding Bristol Myers Squibb or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
MaxCyte vs. Bristol Myers Squibb
Performance |
| Timeline |
| MaxCyte |
| Bristol Myers Squibb |
MaxCyte and Bristol-Myers Squibb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MaxCyte and Bristol-Myers Squibb
The main advantage of trading using opposite MaxCyte and Bristol-Myers Squibb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxCyte position performs unexpectedly, Bristol-Myers Squibb 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 Bristol-Myers Squibb will offset losses from the drop in Bristol-Myers Squibb's long position.| MaxCyte vs. Sight Sciences | MaxCyte vs. CVRx Inc | MaxCyte vs. Neuropace | MaxCyte vs. Rapid Micro Biosystems |
| Bristol-Myers Squibb vs. Novartis AG | Bristol-Myers Squibb vs. Bayer AG | Bristol-Myers Squibb vs. Astellas Pharma | Bristol-Myers Squibb vs. Roche Holding AG |
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.
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