Correlation Between BRISTOL and Maanshan Iron
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By analyzing existing cross correlation between BRISTOL MYERS SQUIBB CO and Maanshan Iron Steel, you can compare the effects of market volatilities on BRISTOL and Maanshan Iron 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 Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRISTOL and Maanshan Iron.
Diversification Opportunities for BRISTOL and Maanshan Iron
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BRISTOL and Maanshan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BRISTOL MYERS SQUIBB CO and Maanshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maanshan Iron Steel 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 Maanshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maanshan Iron Steel has no effect on the direction of BRISTOL i.e., BRISTOL and Maanshan Iron go up and down completely randomly.
Pair Corralation between BRISTOL and Maanshan Iron
Assuming the 90 days trading horizon BRISTOL MYERS SQUIBB CO is expected to generate 0.06 times more return on investment than Maanshan Iron. However, BRISTOL MYERS SQUIBB CO is 15.64 times less risky than Maanshan Iron. It trades about 0.03 of its potential returns per unit of risk. Maanshan Iron Steel is currently generating about 0.0 per unit of risk. If you would invest 9,784 in BRISTOL MYERS SQUIBB CO on September 3, 2024 and sell it today you would earn a total of 132.00 from holding BRISTOL MYERS SQUIBB CO or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.97% |
| Values | Daily Returns |
BRISTOL MYERS SQUIBB CO vs. Maanshan Iron Steel
Performance |
| Timeline |
| BRISTOL MYERS SQUIBB |
| Maanshan Iron Steel |
BRISTOL and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRISTOL and Maanshan Iron
The main advantage of trading using opposite BRISTOL and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRISTOL position performs unexpectedly, Maanshan Iron 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 Maanshan Iron will offset losses from the drop in Maanshan Iron's long position.| BRISTOL vs. The Travelers Companies | BRISTOL vs. GE Aerospace | BRISTOL vs. Walmart | BRISTOL vs. Pfizer Inc |
| Maanshan Iron vs. Ta Chen Stainless | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Nucor 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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