Correlation Between Park Electrochemical and BRISTOL
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By analyzing existing cross correlation between Park Electrochemical and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on Park Electrochemical 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 Park Electrochemical with a short position of BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Electrochemical and BRISTOL.
Diversification Opportunities for Park Electrochemical and BRISTOL
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Park and BRISTOL is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Park Electrochemical 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 Park Electrochemical 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 Park Electrochemical 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 Park Electrochemical i.e., Park Electrochemical and BRISTOL go up and down completely randomly.
Pair Corralation between Park Electrochemical and BRISTOL
Considering the 90-day investment horizon Park Electrochemical is expected to generate 2.59 times more return on investment than BRISTOL. However, Park Electrochemical is 2.59 times more volatile than BRISTOL MYERS SQUIBB CO. It trades about 0.01 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about -0.04 per unit of risk. If you would invest 1,483 in Park Electrochemical on September 14, 2024 and sell it today you would earn a total of 3.00 from holding Park Electrochemical or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Park Electrochemical vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| Park Electrochemical |
| BRISTOL MYERS SQUIBB |
Park Electrochemical and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Electrochemical and BRISTOL
The main advantage of trading using opposite Park Electrochemical and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Electrochemical 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.| Park Electrochemical vs. Innovative Solutions and | Park Electrochemical vs. VSE Corporation | Park Electrochemical vs. Curtiss Wright | Park Electrochemical vs. Ducommun Incorporated |
| BRISTOL vs. Ecolab Inc | BRISTOL vs. Park Electrochemical | BRISTOL vs. NL Industries | BRISTOL vs. VirnetX Holding Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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