Correlation Between NAYA Biosciences, and Bristol-Myers Squibb
Can any of the company-specific risk be diversified away by investing in both NAYA Biosciences, 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 NAYA Biosciences, 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 NAYA Biosciences, and Bristol Myers Squibb, you can compare the effects of market volatilities on NAYA Biosciences, 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 NAYA Biosciences, with a short position of Bristol-Myers Squibb. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAYA Biosciences, and Bristol-Myers Squibb.
Diversification Opportunities for NAYA Biosciences, and Bristol-Myers Squibb
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NAYA and Bristol-Myers is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding NAYA Biosciences, 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 NAYA Biosciences, 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 NAYA Biosciences, 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 NAYA Biosciences, i.e., NAYA Biosciences, and Bristol-Myers Squibb go up and down completely randomly.
Pair Corralation between NAYA Biosciences, and Bristol-Myers Squibb
Given the investment horizon of 90 days NAYA Biosciences, is expected to generate 3.18 times more return on investment than Bristol-Myers Squibb. However, NAYA Biosciences, is 3.18 times more volatile than Bristol Myers Squibb. It trades about 0.03 of its potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.04 per unit of risk. If you would invest 149.00 in NAYA Biosciences, on September 2, 2024 and sell it today you would lose (51.00) from holding NAYA Biosciences, or give up 34.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.4% |
| Values | Daily Returns |
NAYA Biosciences, vs. Bristol Myers Squibb
Performance |
| Timeline |
| NAYA Biosciences, |
| Bristol Myers Squibb |
NAYA Biosciences, and Bristol-Myers Squibb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAYA Biosciences, and Bristol-Myers Squibb
The main advantage of trading using opposite NAYA Biosciences, and Bristol-Myers Squibb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAYA Biosciences, 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.| NAYA Biosciences, vs. Pekin Life Insurance | NAYA Biosciences, vs. NETGEAR | NAYA Biosciences, vs. Evertz Technologies Limited | NAYA Biosciences, vs. Arrow Electronics |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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