Correlation Between CEMEX SAB and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both CEMEX SAB 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 CEMEX SAB and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEMEX SAB de and Bristol Myers Squibb, you can compare the effects of market volatilities on CEMEX SAB 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 CEMEX SAB with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX SAB and Bristol Myers.
Diversification Opportunities for CEMEX SAB and Bristol Myers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CEMEX and Bristol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX SAB de 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 CEMEX SAB 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 CEMEX SAB de 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 CEMEX SAB i.e., CEMEX SAB and Bristol Myers go up and down completely randomly.
Pair Corralation between CEMEX SAB and Bristol Myers
If you would invest 59.00 in CEMEX SAB de on January 20, 2024 and sell it today you would earn a total of 21.00 from holding CEMEX SAB de or generate 35.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CEMEX SAB de vs. Bristol Myers Squibb
Performance |
| Timeline |
| CEMEX SAB de |
| Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CEMEX SAB and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX SAB and Bristol Myers
The main advantage of trading using opposite CEMEX SAB and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX SAB 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.| CEMEX SAB vs. CRH PLC ADR | CEMEX SAB vs. Martin Marietta Materials | CEMEX SAB vs. Vulcan Materials | CEMEX SAB vs. James Hardie Industries |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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