Correlation Between United Homes and BRISTOL
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By analyzing existing cross correlation between United Homes Group and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on United Homes 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 United Homes with a short position of BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Homes and BRISTOL.
Diversification Opportunities for United Homes and BRISTOL
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and BRISTOL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding United Homes Group 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 United Homes 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 United Homes Group 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 United Homes i.e., United Homes and BRISTOL go up and down completely randomly.
Pair Corralation between United Homes and BRISTOL
Considering the 90-day investment horizon United Homes Group is expected to generate 8.91 times more return on investment than BRISTOL. However, United Homes is 8.91 times more volatile than BRISTOL MYERS SQUIBB CO. It trades about 0.08 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about -0.18 per unit of risk. If you would invest 577.00 in United Homes Group on September 4, 2024 and sell it today you would earn a total of 30.00 from holding United Homes Group or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
United Homes Group vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| United Homes Group |
| BRISTOL MYERS SQUIBB |
United Homes and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Homes and BRISTOL
The main advantage of trading using opposite United Homes and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Homes 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.| United Homes vs. VF Corporation | United Homes vs. Levi Strauss Co | United Homes vs. Under Armour A | United Homes vs. Columbia Sportswear |
| BRISTOL vs. United Homes Group | BRISTOL vs. Hooker Furniture | BRISTOL vs. Ardelyx | BRISTOL vs. Smith Douglas Homes |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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