Correlation Analysis Between Bristol Myers and Pfizer

This module allows you to analyze existing cross correlation between Bristol Myers Squibb Company and Pfizer. You can compare the effects of market volatilities on Bristol Myers and Pfizer 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 Pfizer. See also your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Pfizer.
Horizon     30 Days    Login   to change
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Comparative Performance

Bristol Myers Squibb  
2424

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bristol Myers Squibb Company are ranked lower than 24 (%) 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.
Pfizer  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Pfizer is not utilizing all of its potentials. The existing stock price tumult, may contribute to shorter-term losses for the shareholders.

Bristol Myers and Pfizer Volatility Contrast

 Predicted Return Density 
      Returns 

Bristol Myers Squibb Company  vs.  Pfizer Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Bristol Myers Squibb Company is expected to generate 1.03 times more return on investment than Pfizer. However, Bristol Myers is 1.03 times more volatile than Pfizer. It trades about 0.35 of its potential returns per unit of risk. Pfizer is currently generating about 0.06 per unit of risk. If you would invest  4,961  in Bristol Myers Squibb Company on November 11, 2019 and sell it today you would earn a total of  1,248  from holding Bristol Myers Squibb Company or generate 25.16% return on investment over 30 days.

Pair Corralation between Bristol Myers and Pfizer

0.71
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Bristol Myers and Pfizer

Bristol Myers Squibb Company diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb Company and Pfizer Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Pfizer 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 Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer has no effect on the direction of Bristol Myers i.e. Bristol Myers and Pfizer go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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