Correlation Between China Molybdenum and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both China Molybdenum 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 China Molybdenum and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Molybdenum Co and Bristol Myers Squibb, you can compare the effects of market volatilities on China Molybdenum 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 China Molybdenum with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Molybdenum and Bristol Myers.
Diversification Opportunities for China Molybdenum and Bristol Myers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Bristol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Molybdenum Co 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 China Molybdenum 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 China Molybdenum Co 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 China Molybdenum i.e., China Molybdenum and Bristol Myers go up and down completely randomly.
Pair Corralation between China Molybdenum and Bristol Myers
If you would invest 61.00 in China Molybdenum Co on December 29, 2023 and sell it today you would earn a total of 20.00 from holding China Molybdenum Co or generate 32.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
China Molybdenum Co vs. Bristol-Myers Squibb
Performance |
Timeline |
China Molybdenum |
Bristol-Myers Squibb |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
China Molybdenum and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Molybdenum and Bristol Myers
The main advantage of trading using opposite China Molybdenum and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Molybdenum 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.China Molybdenum vs. BHP Group Limited | China Molybdenum vs. Rio Tinto ADR | China Molybdenum vs. Kroger Company | China Molybdenum vs. SCOR PK |
Bristol Myers vs. VirnetX Holding Corp | Bristol Myers vs. Joint Stock | Bristol Myers vs. Ryanair Holdings PLC | Bristol Myers vs. Nextplat 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |