Correlation Between Vaccinex and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Vaccinex and Bristol Myers 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 Vaccinex and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaccinex and Bristol Myers Squibb, you can compare the effects of market volatilities on Vaccinex and Bristol Myers 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 Vaccinex with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaccinex and Bristol Myers.
Diversification Opportunities for Vaccinex and Bristol Myers
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vaccinex and Bristol is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex 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 Vaccinex 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 Vaccinex are associated (or correlated) with Bristol Myers. 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 Vaccinex i.e., Vaccinex and Bristol Myers go up and down completely randomly.
Pair Corralation between Vaccinex and Bristol Myers
Given the investment horizon of 90 days Vaccinex is expected to generate 2.69 times less return on investment than Bristol Myers. In addition to that, Vaccinex is 3.01 times more volatile than Bristol Myers Squibb. It trades about 0.02 of its total potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.19 per unit of volatility. If you would invest 5,264 in Bristol Myers Squibb on August 27, 2024 and sell it today you would earn a total of 623.00 from holding Bristol Myers Squibb or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaccinex vs. Bristol Myers Squibb
Performance |
| Timeline |
| Vaccinex |
| Bristol Myers Squibb |
Vaccinex and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaccinex and Bristol Myers
The main advantage of trading using opposite Vaccinex and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaccinex position performs unexpectedly, Bristol Myers 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 will offset losses from the drop in Bristol Myers' long position.| Vaccinex vs. Protara Therapeutics | Vaccinex vs. Monopar Therapeutics | Vaccinex vs. Surrozen | Vaccinex vs. Salarius Pharmaceuticals |
| Bristol Myers vs. Capricor Therapeutics | Bristol Myers vs. Soleno Therapeutics | Bristol Myers vs. Bio Path Holdings | Bristol Myers vs. Moleculin Biotech |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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