Correlation Between BioCryst Pharmaceuticals and CONMED

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

By analyzing existing cross correlation between BioCryst Pharmaceuticals and CONMED, you can compare the effects of market volatilities on BioCryst Pharmaceuticals and CONMED 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 BioCryst Pharmaceuticals with a short position of CONMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioCryst Pharmaceuticals and CONMED.

Diversification Opportunities for BioCryst Pharmaceuticals and CONMED

0.74

Correlation Coefficient

BioCryst Pharmaceuticals  CONMED

Poor diversification

The 3 months correlation between BioCryst and CONMED is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding BioCryst Pharmaceuticals and CONMED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONMED and BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals are associated (or correlated) with CONMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONMED has no effect on the direction of BioCryst Pharmaceuticals i.e., BioCryst Pharmaceuticals and CONMED go up and down completely randomly.

Pair Corralation between BioCryst Pharmaceuticals and CONMED

Given the investment horizon of 90 days BioCryst Pharmaceuticals is expected to under-perform the CONMED. But the stock apears to be less risky and, when comparing its historical volatility, BioCryst Pharmaceuticals is 1.17 times less risky than CONMED. The stock trades about -0.2 of its potential returns per unit of risk. The CONMED is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  5,571  in CONMED on May 6, 2025 and sell it today you would lose (342.00) from holding CONMED or give up 6.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

BioCryst Pharmaceuticals  vs.  CONMED

BioCryst Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioCryst Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

CONMED

Risk-Adjusted Performance

Very Weak

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

Pair Trading with BioCryst Pharmaceuticals and CONMED

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

The idea behind BioCryst Pharmaceuticals and CONMED 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.