Correlation Between Bristol-Myers Squibb and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Bristol-Myers Squibb and Gecina SA 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 Squibb and Gecina SA 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 Gecina SA, you can compare the effects of market volatilities on Bristol-Myers Squibb and Gecina SA 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 Squibb with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol-Myers Squibb and Gecina SA.
Diversification Opportunities for Bristol-Myers Squibb and Gecina SA
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol-Myers and Gecina is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and Bristol-Myers Squibb 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 Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Bristol-Myers Squibb i.e., Bristol-Myers Squibb and Gecina SA go up and down completely randomly.
Pair Corralation between Bristol-Myers Squibb and Gecina SA
Assuming the 90 days horizon Bristol-Myers Squibb is expected to generate 9.42 times less return on investment than Gecina SA. In addition to that, Bristol-Myers Squibb is 1.08 times more volatile than Gecina SA. It trades about 0.0 of its total potential returns per unit of risk. Gecina SA is currently generating about 0.04 per unit of volatility. If you would invest 6,810 in Gecina SA on September 4, 2024 and sell it today you would earn a total of 2,890 from holding Gecina SA or generate 42.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 63.35% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Gecina SA
Performance |
| Timeline |
| Bristol Myers Squibb |
| Gecina SA |
Bristol-Myers Squibb and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol-Myers Squibb and Gecina SA
The main advantage of trading using opposite Bristol-Myers Squibb and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol-Myers Squibb position performs unexpectedly, Gecina SA 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 Gecina SA will offset losses from the drop in Gecina SA's long position.| Bristol-Myers Squibb vs. Novartis AG | Bristol-Myers Squibb vs. Bayer AG | Bristol-Myers Squibb vs. Astellas Pharma | Bristol-Myers Squibb vs. Roche Holding AG |
| Gecina SA vs. Highwoods Properties | Gecina SA vs. Piedmont Office Realty | Gecina SA vs. Douglas Emmett | Gecina SA vs. Kilroy Realty Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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