Correlation Between Pfizer and BRISTOL
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By analyzing existing cross correlation between Pfizer Inc and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on Pfizer and BRISTOL 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 Pfizer with a short position of BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and BRISTOL.
Diversification Opportunities for Pfizer and BRISTOL
Poor diversification
The 3 months correlation between Pfizer and BRISTOL is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and BRISTOL MYERS SQUIBB CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRISTOL MYERS SQUIBB and Pfizer 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 Pfizer Inc are associated (or correlated) with BRISTOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRISTOL MYERS SQUIBB has no effect on the direction of Pfizer i.e., Pfizer and BRISTOL go up and down completely randomly.
Pair Corralation between Pfizer and BRISTOL
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the BRISTOL. In addition to that, Pfizer is 2.88 times more volatile than BRISTOL MYERS SQUIBB CO. It trades about -0.06 of its total potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about -0.11 per unit of volatility. If you would invest 9,111 in BRISTOL MYERS SQUIBB CO on September 3, 2024 and sell it today you would lose (319.00) from holding BRISTOL MYERS SQUIBB CO or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Pfizer Inc vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| Pfizer Inc |
| BRISTOL MYERS SQUIBB |
Pfizer and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and BRISTOL
The main advantage of trading using opposite Pfizer and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, BRISTOL 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 BRISTOL will offset losses from the drop in BRISTOL's long position.| Pfizer vs. Merck Company | Pfizer vs. Johnson Johnson | Pfizer vs. Highway Holdings Limited | Pfizer vs. QCR Holdings |
| BRISTOL vs. The Travelers Companies | BRISTOL vs. GE Aerospace | BRISTOL vs. Walmart | BRISTOL vs. Pfizer Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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