Correlation Between Bristol-Myers Squibb and 207597DV4
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By analyzing existing cross correlation between Bristol Myers Squibb and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Bristol-Myers Squibb and 207597DV4 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 207597DV4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol-Myers Squibb and 207597DV4.
Diversification Opportunities for Bristol-Myers Squibb and 207597DV4
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bristol-Myers and 207597DV4 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597DV4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Bristol-Myers Squibb i.e., Bristol-Myers Squibb and 207597DV4 go up and down completely randomly.
Pair Corralation between Bristol-Myers Squibb and 207597DV4
Assuming the 90 days horizon Bristol Myers Squibb is expected to generate 3.24 times more return on investment than 207597DV4. However, Bristol-Myers Squibb is 3.24 times more volatile than CONNECTICUT LT PWR. It trades about 0.22 of its potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.28 per unit of risk. If you would invest 84,500 in Bristol Myers Squibb on August 30, 2024 and sell it today you would earn a total of 16,055 from holding Bristol Myers Squibb or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Bristol Myers Squibb |
| CONNECTICUT LT PWR |
Bristol-Myers Squibb and 207597DV4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol-Myers Squibb and 207597DV4
The main advantage of trading using opposite Bristol-Myers Squibb and 207597DV4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol-Myers Squibb position performs unexpectedly, 207597DV4 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 207597DV4 will offset losses from the drop in 207597DV4'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 |
| 207597DV4 vs. One Liberty Properties | 207597DV4 vs. Highway Holdings Limited | 207597DV4 vs. Guangdong Investment Limited | 207597DV4 vs. NioCorp Developments Ltd |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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