Correlation Between Bristol Myers and P3 Health
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and P3 Health 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 P3 Health 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 P3 Health Partners, you can compare the effects of market volatilities on Bristol Myers and P3 Health 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 P3 Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and P3 Health.
Diversification Opportunities for Bristol Myers and P3 Health
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and PIII is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and P3 Health Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P3 Health Partners 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 P3 Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P3 Health Partners has no effect on the direction of Bristol Myers i.e., Bristol Myers and P3 Health go up and down completely randomly.
Pair Corralation between Bristol Myers and P3 Health
Considering the 90-day investment horizon Bristol Myers Squibb is expected to generate 0.26 times more return on investment than P3 Health. However, Bristol Myers Squibb is 3.79 times less risky than P3 Health. It trades about 0.12 of its potential returns per unit of risk. P3 Health Partners is currently generating about -0.11 per unit of risk. If you would invest 5,577 in Bristol Myers Squibb on September 1, 2024 and sell it today you would earn a total of 345.00 from holding Bristol Myers Squibb or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. P3 Health Partners
Performance |
| Timeline |
| Bristol Myers Squibb |
| P3 Health Partners |
Bristol Myers and P3 Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and P3 Health
The main advantage of trading using opposite Bristol Myers and P3 Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, P3 Health 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 P3 Health will offset losses from the drop in P3 Health's long position.| Bristol Myers vs. Crinetics Pharmaceuticals | Bristol Myers vs. Enanta Pharmaceuticals | Bristol Myers vs. Amicus Therapeutics | Bristol Myers vs. Connect Biopharma Holdings |
| P3 Health vs. Sonida Senior Living | P3 Health vs. Acadia Healthcare | P3 Health vs. CryoCell International | P3 Health vs. Community Health Systems |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |