Correlation Between CardieX and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both CardieX and Bristol Myers at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CardieX and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CardieX Limited and Bristol Myers Squibb, you can compare the effects of market volatilities on CardieX and Bristol Myers 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 CardieX with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CardieX and Bristol Myers.
Diversification Opportunities for CardieX and Bristol Myers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CardieX and Bristol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CardieX Limited and Bristol Myers Squibb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristol Myers Squibb and CardieX 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 CardieX Limited are associated (or correlated) with Bristol Myers. 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 CardieX i.e., CardieX and Bristol Myers go up and down completely randomly.
Pair Corralation between CardieX and Bristol Myers
If you would invest (100.00) in Bristol Myers Squibb on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Bristol Myers Squibb or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CardieX Limited vs. Bristol Myers Squibb
Performance |
| Timeline |
| CardieX Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CardieX and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CardieX and Bristol Myers
The main advantage of trading using opposite CardieX and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CardieX position performs unexpectedly, Bristol Myers 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 Myers will offset losses from the drop in Bristol Myers' long position.| CardieX vs. Grocery Outlet Holding | CardieX vs. KNOT Offshore Partners | CardieX vs. Hanover Foods | CardieX vs. BorgWarner |
| Bristol Myers vs. Novartis AG | Bristol Myers vs. Bayer Aktiengesellschaft | Bristol Myers vs. Astellas Pharma | Bristol Myers vs. Roche Holding AG |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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