Correlation Between NYSE Composite and BioCryst Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and BioCryst Pharmaceuticals 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 NYSE Composite and BioCryst Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and BioCryst Pharmaceuticals, you can compare the effects of market volatilities on NYSE Composite and BioCryst Pharmaceuticals 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 NYSE Composite with a short position of BioCryst Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BioCryst Pharmaceuticals.
Diversification Opportunities for NYSE Composite and BioCryst Pharmaceuticals
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and BioCryst is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BioCryst Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCryst Pharmaceuticals and NYSE Composite 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 NYSE Composite are associated (or correlated) with BioCryst Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCryst Pharmaceuticals has no effect on the direction of NYSE Composite i.e., NYSE Composite and BioCryst Pharmaceuticals go up and down completely randomly.
Pair Corralation between NYSE Composite and BioCryst Pharmaceuticals
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.14 times more return on investment than BioCryst Pharmaceuticals. However, NYSE Composite is 6.96 times less risky than BioCryst Pharmaceuticals. It trades about 0.24 of its potential returns per unit of risk. BioCryst Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 1,945,627 in NYSE Composite on August 26, 2024 and sell it today you would earn a total of 66,718 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. BioCryst Pharmaceuticals
Performance |
| Timeline |
NYSE Composite and BioCryst Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BioCryst Pharmaceuticals
Pair trading matchups for BioCryst Pharmaceuticals
Pair Trading with NYSE Composite and BioCryst Pharmaceuticals
The main advantage of trading using opposite NYSE Composite and BioCryst Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals will offset losses from the drop in BioCryst Pharmaceuticals' long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| BioCryst Pharmaceuticals vs. TG Therapeutics | BioCryst Pharmaceuticals vs. Axsome Therapeutics | BioCryst Pharmaceuticals vs. Seres Therapeutics | BioCryst Pharmaceuticals vs. Madrigal Pharmaceuticals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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