Correlation Between Bristol Myers and Nasdaq Benchmark
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By analyzing existing cross correlation between Bristol Myers Squibb and Nasdaq Benchmark Energy, you can compare the effects of market volatilities on Bristol Myers and Nasdaq Benchmark 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 Nasdaq Benchmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Nasdaq Benchmark.
Diversification Opportunities for Bristol Myers and Nasdaq Benchmark
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bristol and Nasdaq is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Nasdaq Benchmark Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Benchmark Energy 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 Nasdaq Benchmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Benchmark Energy has no effect on the direction of Bristol Myers i.e., Bristol Myers and Nasdaq Benchmark go up and down completely randomly.
Pair Corralation between Bristol Myers and Nasdaq Benchmark
Assuming the 90 days horizon Bristol Myers Squibb is expected to generate 3.12 times more return on investment than Nasdaq Benchmark. However, Bristol Myers is 3.12 times more volatile than Nasdaq Benchmark Energy. It trades about 0.09 of its potential returns per unit of risk. Nasdaq Benchmark Energy is currently generating about -0.09 per unit of risk. If you would invest 84,453 in Bristol Myers Squibb on September 19, 2024 and sell it today you would earn a total of 8,702 from holding Bristol Myers Squibb or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Nasdaq Benchmark Energy
Performance |
| Timeline |
Bristol Myers and Nasdaq Benchmark Volatility Contrast
Predicted Return Density |
| Returns |
Bristol Myers Squibb
Pair trading matchups for Bristol Myers
Nasdaq Benchmark Energy
Pair trading matchups for Nasdaq Benchmark
Pair Trading with Bristol Myers and Nasdaq Benchmark
The main advantage of trading using opposite Bristol Myers and Nasdaq Benchmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Nasdaq Benchmark 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 Nasdaq Benchmark will offset losses from the drop in Nasdaq Benchmark's long position.| Bristol Myers vs. Novartis AG | Bristol Myers vs. Bayer AG | Bristol Myers vs. Astellas Pharma | Bristol Myers vs. Roche Holding AG |
| Nasdaq Benchmark vs. Radcom | Nasdaq Benchmark vs. Ziff Davis | Nasdaq Benchmark vs. Sphere Entertainment Co | Nasdaq Benchmark vs. WiMi Hologram Cloud |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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