Correlation Between BRISTOL and Dow Jones
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By analyzing existing cross correlation between BRISTOL MYERS SQUIBB CO and Dow Jones Industrial, you can compare the effects of market volatilities on BRISTOL and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRISTOL and Dow Jones.
Diversification Opportunities for BRISTOL and Dow Jones
Pay attention - limited upside
The 3 months correlation between BRISTOL and Dow is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BRISTOL MYERS SQUIBB CO and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of BRISTOL i.e., BRISTOL and Dow Jones go up and down completely randomly.
Pair Corralation between BRISTOL and Dow Jones
Assuming the 90 days trading horizon BRISTOL MYERS SQUIBB CO is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, BRISTOL MYERS SQUIBB CO is 1.8 times less risky than Dow Jones. The bond trades about -0.01 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,351,765 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,139,300 from holding Dow Jones Industrial or generate 33.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
BRISTOL MYERS SQUIBB CO vs. Dow Jones Industrial
Performance |
| Timeline |
BRISTOL and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BRISTOL MYERS SQUIBB CO
Pair trading matchups for BRISTOL
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BRISTOL and Dow Jones
The main advantage of trading using opposite BRISTOL and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRISTOL position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| BRISTOL vs. Hooker Furniture | BRISTOL vs. Procter Gamble | BRISTOL vs. Aterian | BRISTOL vs. Eastman Kodak Co |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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