Correlation Between Bristol Myers and Boundless Bio,

Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Boundless Bio, 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 Bristol Myers and Boundless Bio, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bristol Myers Squibb and Boundless Bio, Common, you can compare the effects of market volatilities on Bristol Myers and Boundless Bio, 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 Bristol Myers with a short position of Boundless Bio,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Boundless Bio,.

Diversification Opportunities for Bristol Myers and Boundless Bio,

-0.31

Correlation Coefficient

Bristol Myers  Boundless Bio,

Very good diversification

The 3 months correlation between Bristol and Boundless is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Boundless Bio, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boundless Bio, Common and Bristol Myers 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 Bristol Myers Squibb are associated (or correlated) with Boundless Bio,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boundless Bio, Common has no effect on the direction of Bristol Myers i.e., Bristol Myers and Boundless Bio, go up and down completely randomly.

Pair Corralation between Bristol Myers and Boundless Bio,

Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.25 times more return on investment than Boundless Bio,. However, Bristol Myers Squibb is 4.0 times less risky than Boundless Bio,. It trades about -0.01 of its potential returns per unit of risk. Boundless Bio, Common is currently generating about -0.1 per unit of risk. If you would invest  6,717  in Bristol Myers Squibb on October 4, 2024 and sell it today you would lose (1,038) from holding Bristol Myers Squibb or give up 15.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	38.99%
Values	Daily Returns

Bristol Myers Squibb  vs.  Boundless Bio, Common

Bristol Myers Squibb

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bristol Myers Squibb are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal primary indicators, Bristol Myers may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Boundless Bio, Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boundless Bio, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Boundless Bio, is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bristol Myers and Boundless Bio,

The main advantage of trading using opposite Bristol Myers and Boundless Bio, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Boundless Bio, 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 Boundless Bio, will offset losses from the drop in Boundless Bio,'s long position.

The idea behind Bristol Myers Squibb and Boundless Bio, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.