Correlation Between ING Group and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both ING Group 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 ING Group and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Group NV and Bristol Myers Squibb, you can compare the effects of market volatilities on ING Group 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 ING Group with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Group and Bristol Myers.
Diversification Opportunities for ING Group and Bristol Myers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ING and Bristol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ING Group NV 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 ING Group 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 ING Group NV 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 ING Group i.e., ING Group and Bristol Myers go up and down completely randomly.
Pair Corralation between ING Group 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 |
ING Group NV vs. Bristol Myers Squibb
Performance |
Timeline |
ING Group NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ING Group and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ING Group and Bristol Myers
The main advantage of trading using opposite ING Group and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Group 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.ING Group vs. Fidus Investment Corp | ING Group vs. Blue Owl Capital | ING Group vs. SunLink Health Systems | ING Group vs. Cumberland Pharmaceuticals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |