Correlation Analysis Between Bristol Myers and Merck

This module allows you to analyze existing cross correlation between Bristol Myers Squibb Company and Merck Company. You can compare the effects of market volatilities on Bristol Myers and Merck 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 Myers with a short position of Merck. See also your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Merck.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Bristol Myers Squibb  
1818

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bristol Myers Squibb Company are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days. Inspite fairly conflicting basic indicators, Bristol Myers showed solid returns over the last few months and may actually be approaching a breakup point.
Merck  
00

Risk-Adjusted Performance

Over the last 30 days Merck Company has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The existing stock price confusion, may contribute to short-horizon losses for the traders.

Bristol Myers and Merck Volatility Contrast

 Predicted Return Density 
      Returns 

Bristol Myers Squibb Company  vs.  Merck Company Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Bristol Myers Squibb Company is expected to generate 0.81 times more return on investment than Merck. However, Bristol Myers Squibb Company is 1.23 times less risky than Merck. It trades about 0.27 of its potential returns per unit of risk. Merck Company is currently generating about -0.03 per unit of risk. If you would invest  4,777  in Bristol Myers Squibb Company on October 20, 2019 and sell it today you would earn a total of  931.00  from holding Bristol Myers Squibb Company or generate 19.49% return on investment over 30 days.

Pair Corralation between Bristol Myers and Merck

-0.23
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Bristol Myers and Merck

Bristol Myers Squibb Company diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb Company and Merck Company Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Merck and Bristol Myers 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 Company are associated (or correlated) with Merck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merck has no effect on the direction of Bristol Myers i.e. Bristol Myers and Merck go up and down completely randomly.
See also your portfolio center. Please also try Headlines Timeline module to stay connected to all market stories and filter out noise. drill down to analyze hype elasticity.


 
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