Correlation Between Virax Biolabs and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Virax Biolabs 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 Virax Biolabs and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virax Biolabs Group and Bristol Myers Squibb, you can compare the effects of market volatilities on Virax Biolabs 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 Virax Biolabs with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virax Biolabs and Bristol Myers.
Diversification Opportunities for Virax Biolabs and Bristol Myers
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virax and Bristol is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Virax Biolabs Group 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 Virax Biolabs 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 Virax Biolabs Group 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 Virax Biolabs i.e., Virax Biolabs and Bristol Myers go up and down completely randomly.
Pair Corralation between Virax Biolabs and Bristol Myers
Given the investment horizon of 90 days Virax Biolabs Group is expected to under-perform the Bristol Myers. In addition to that, Virax Biolabs is 2.29 times more volatile than Bristol Myers Squibb. It trades about -0.14 of its total potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.15 per unit of volatility. If you would invest 5,306 in Bristol Myers Squibb on August 24, 2024 and sell it today you would earn a total of 517.00 from holding Bristol Myers Squibb or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virax Biolabs Group vs. Bristol Myers Squibb
Performance |
| Timeline |
| Virax Biolabs Group |
| Bristol Myers Squibb |
Virax Biolabs and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virax Biolabs and Bristol Myers
The main advantage of trading using opposite Virax Biolabs and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virax Biolabs 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.| Virax Biolabs vs. Revelation Biosciences | Virax Biolabs vs. Kiora Pharmaceuticals | Virax Biolabs vs. Quoin Pharmaceuticals Ltd | Virax Biolabs vs. Neurobo Pharmaceuticals |
| Bristol Myers vs. Merck Company | Bristol Myers vs. Pfizer Inc | Bristol Myers vs. Eshallgo Class A | Bristol Myers vs. Amtech Systems |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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