Correlation Between Bristol Myers and HyreCar
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and HyreCar 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 HyreCar 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 HyreCar, you can compare the effects of market volatilities on Bristol Myers and HyreCar 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 HyreCar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and HyreCar.
Diversification Opportunities for Bristol Myers and HyreCar
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and HyreCar is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and HyreCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyreCar 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 HyreCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyreCar has no effect on the direction of Bristol Myers i.e., Bristol Myers and HyreCar go up and down completely randomly.
Pair Corralation between Bristol Myers and HyreCar
Assuming the 90 days horizon Bristol Myers is expected to generate 891.63 times less return on investment than HyreCar. But when comparing it to its historical volatility, Bristol Myers Squibb is 12.77 times less risky than HyreCar. It trades about 0.0 of its potential returns per unit of risk. HyreCar is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.79 in HyreCar on September 12, 2024 and sell it today you would lose (1.79) from holding HyreCar or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 59.54% |
| Values | Daily Returns |
Bristol Myers Squibb vs. HyreCar
Performance |
| Timeline |
| Bristol Myers Squibb |
| HyreCar |
Bristol Myers and HyreCar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and HyreCar
The main advantage of trading using opposite Bristol Myers and HyreCar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, HyreCar 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 HyreCar will offset losses from the drop in HyreCar's long position.| Bristol Myers vs. Novartis AG | Bristol Myers vs. Bayer AG | Bristol Myers vs. Astellas Pharma | Bristol Myers vs. Roche Holding AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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