Correlation Between Sera Prognostics and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics 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 Sera Prognostics and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Bristol Myers Squibb, you can compare the effects of market volatilities on Sera Prognostics 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 Sera Prognostics with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Bristol Myers.
Diversification Opportunities for Sera Prognostics and Bristol Myers
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sera and Bristol is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics i.e., Sera Prognostics and Bristol Myers go up and down completely randomly.
Pair Corralation between Sera Prognostics and Bristol Myers
Given the investment horizon of 90 days Sera Prognostics is expected to under-perform the Bristol Myers. In addition to that, Sera Prognostics is 4.51 times more volatile than Bristol Myers Squibb. It trades about -0.13 of its total potential returns per unit of risk. Bristol Myers Squibb is currently generating about -0.38 per unit of volatility. If you would invest 4,394 in Bristol Myers Squibb on March 1, 2024 and sell it today you would lose (369.00) from holding Bristol Myers Squibb or give up 8.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Sera Prognostics vs. Bristol Myers Squibb
Performance |
Timeline |
Sera Prognostics |
Bristol Myers Squibb |
Sera Prognostics and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sera Prognostics and Bristol Myers
The main advantage of trading using opposite Sera Prognostics and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics 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.Sera Prognostics vs. MicroAlgo | Sera Prognostics vs. Morningstar Unconstrained Allocation | Sera Prognostics vs. T Rowe Price | Sera Prognostics vs. Nt International Small Mid |
Bristol Myers vs. Universe Pharmaceuticals | Bristol Myers vs. Akanda Corp | Bristol Myers vs. Petros Pharmaceuticals | Bristol Myers vs. Sunshine Biopharma |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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