Correlation Between Bristol Myers and CareMax
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and CareMax 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 CareMax 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 CareMax, you can compare the effects of market volatilities on Bristol Myers and CareMax 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 CareMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and CareMax.
Diversification Opportunities for Bristol Myers and CareMax
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bristol and CareMax is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and CareMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareMax 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 CareMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareMax has no effect on the direction of Bristol Myers i.e., Bristol Myers and CareMax go up and down completely randomly.
Pair Corralation between Bristol Myers and CareMax
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.23 times more return on investment than CareMax. However, Bristol Myers Squibb is 4.39 times less risky than CareMax. It trades about 0.16 of its potential returns per unit of risk. CareMax is currently generating about -0.19 per unit of risk. If you would invest 5,292 in Bristol Myers Squibb on August 25, 2024 and sell it today you would earn a total of 531.00 from holding Bristol Myers Squibb or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bristol Myers Squibb vs. CareMax
Performance |
| Timeline |
| Bristol Myers Squibb |
| CareMax |
Bristol Myers and CareMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and CareMax
The main advantage of trading using opposite Bristol Myers and CareMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, CareMax 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 CareMax will offset losses from the drop in CareMax's long position.| Bristol Myers vs. Capricor Therapeutics | Bristol Myers vs. Akari Therapeutics PLC | Bristol Myers vs. Soleno Therapeutics | Bristol Myers vs. Bio Path Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |