Correlation Between Bristol Myers and Vinte Viviendas
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Vinte Viviendas 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 Vinte Viviendas 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 Vinte Viviendas Integrales, you can compare the effects of market volatilities on Bristol Myers and Vinte Viviendas 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 Vinte Viviendas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Vinte Viviendas.
Diversification Opportunities for Bristol Myers and Vinte Viviendas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and Vinte is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Vinte Viviendas Integrales in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinte Viviendas Inte 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 Vinte Viviendas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinte Viviendas Inte has no effect on the direction of Bristol Myers i.e., Bristol Myers and Vinte Viviendas go up and down completely randomly.
Pair Corralation between Bristol Myers and Vinte Viviendas
If you would invest 110,500 in Bristol Myers Squibb on September 2, 2024 and sell it today you would earn a total of 11,700 from holding Bristol Myers Squibb or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Vinte Viviendas Integrales
Performance |
| Timeline |
| Bristol Myers Squibb |
| Vinte Viviendas Inte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Bristol Myers and Vinte Viviendas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Vinte Viviendas
The main advantage of trading using opposite Bristol Myers and Vinte Viviendas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Vinte Viviendas 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 Vinte Viviendas will offset losses from the drop in Vinte Viviendas' long position.| Bristol Myers vs. Verizon Communications | Bristol Myers vs. First Republic Bank | Bristol Myers vs. UnitedHealth Group Incorporated | Bristol Myers vs. Prudential Financial |
| Vinte Viviendas vs. Grupo Carso SAB | Vinte Viviendas vs. Samsung Electronics Co | Vinte Viviendas vs. Grupo Hotelero Santa | Vinte Viviendas vs. McEwen Mining |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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