Correlation Between Bristol Myers and Genfit
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Genfit 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 Genfit 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 Genfit, you can compare the effects of market volatilities on Bristol Myers and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Genfit.
Diversification Opportunities for Bristol Myers and Genfit
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bristol and Genfit is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Bristol Myers i.e., Bristol Myers and Genfit go up and down completely randomly.
Pair Corralation between Bristol Myers and Genfit
Considering the 90-day investment horizon Bristol Myers Squibb is expected to under-perform the Genfit. But the stock apears to be less risky and, when comparing its historical volatility, Bristol Myers Squibb is 2.64 times less risky than Genfit. The stock trades about -0.07 of its potential returns per unit of risk. The Genfit is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 357.00 in Genfit on March 28, 2024 and sell it today you would earn a total of 18.00 from holding Genfit or generate 5.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bristol Myers Squibb vs. Genfit
Performance |
Timeline |
Bristol Myers Squibb |
Genfit |
Bristol Myers and Genfit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bristol Myers and Genfit
The main advantage of trading using opposite Bristol Myers and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.Bristol Myers vs. Fresh Del Monte | Bristol Myers vs. Anheuser Busch Inbev | Bristol Myers vs. Ab Global Bond | Bristol Myers vs. IQ MacKay Municipal |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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