Correlation Between Bristol-Myers Squibb and Global
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By analyzing existing cross correlation between Bristol Myers Squibb and Global Payments 415, you can compare the effects of market volatilities on Bristol-Myers Squibb and Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol-Myers Squibb and Global.
Diversification Opportunities for Bristol-Myers Squibb and Global
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bristol-Myers and Global is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Global Payments 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 415 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments 415 has no effect on the direction of Bristol-Myers Squibb i.e., Bristol-Myers Squibb and Global go up and down completely randomly.
Pair Corralation between Bristol-Myers Squibb and Global
Assuming the 90 days horizon Bristol Myers Squibb is expected to generate 3.33 times more return on investment than Global. However, Bristol-Myers Squibb is 3.33 times more volatile than Global Payments 415. It trades about 0.02 of its potential returns per unit of risk. Global Payments 415 is currently generating about 0.0 per unit of risk. If you would invest 99,631 in Bristol Myers Squibb on September 3, 2024 and sell it today you would earn a total of 924.00 from holding Bristol Myers Squibb or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.34% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Global Payments 415
Performance |
| Timeline |
| Bristol Myers Squibb |
| Global Payments 415 |
Bristol-Myers Squibb and Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol-Myers Squibb and Global
The main advantage of trading using opposite Bristol-Myers Squibb and Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol-Myers Squibb position performs unexpectedly, Global 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 Global will offset losses from the drop in Global'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 |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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