Correlation Between BRISTOL and LithiumBank Resources
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By analyzing existing cross correlation between BRISTOL MYERS SQUIBB CO and LithiumBank Resources Corp, you can compare the effects of market volatilities on BRISTOL and LithiumBank Resources 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 with a short position of LithiumBank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRISTOL and LithiumBank Resources.
Diversification Opportunities for BRISTOL and LithiumBank Resources
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BRISTOL and LithiumBank is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BRISTOL MYERS SQUIBB CO and LithiumBank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LithiumBank Resources and BRISTOL 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 CO are associated (or correlated) with LithiumBank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LithiumBank Resources has no effect on the direction of BRISTOL i.e., BRISTOL and LithiumBank Resources go up and down completely randomly.
Pair Corralation between BRISTOL and LithiumBank Resources
Assuming the 90 days trading horizon BRISTOL MYERS SQUIBB CO is expected to generate 0.08 times more return on investment than LithiumBank Resources. However, BRISTOL MYERS SQUIBB CO is 13.16 times less risky than LithiumBank Resources. It trades about -0.03 of its potential returns per unit of risk. LithiumBank Resources Corp is currently generating about -0.1 per unit of risk. If you would invest 9,649 in BRISTOL MYERS SQUIBB CO on September 2, 2024 and sell it today you would lose (211.00) from holding BRISTOL MYERS SQUIBB CO or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
BRISTOL MYERS SQUIBB CO vs. LithiumBank Resources Corp
Performance |
| Timeline |
| BRISTOL MYERS SQUIBB |
| LithiumBank Resources |
BRISTOL and LithiumBank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRISTOL and LithiumBank Resources
The main advantage of trading using opposite BRISTOL and LithiumBank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRISTOL position performs unexpectedly, LithiumBank Resources 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 LithiumBank Resources will offset losses from the drop in LithiumBank Resources' long position.| BRISTOL vs. LithiumBank Resources Corp | BRISTOL vs. SNDL Inc | BRISTOL vs. Suntory Beverage Food | BRISTOL vs. AmTrust Financial Services |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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