Correlation Between Bristol-Myers Squibb and Nass Valley
Can any of the company-specific risk be diversified away by investing in both Bristol-Myers Squibb and Nass Valley 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 Bristol-Myers Squibb and Nass Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bristol Myers Squibb and Nass Valley Gateway, you can compare the effects of market volatilities on Bristol-Myers Squibb and Nass Valley 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 Squibb with a short position of Nass Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol-Myers Squibb and Nass Valley.
Diversification Opportunities for Bristol-Myers Squibb and Nass Valley
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol-Myers and Nass is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Nass Valley Gateway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nass Valley Gateway and Bristol-Myers Squibb 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 are associated (or correlated) with Nass Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nass Valley Gateway has no effect on the direction of Bristol-Myers Squibb i.e., Bristol-Myers Squibb and Nass Valley go up and down completely randomly.
Pair Corralation between Bristol-Myers Squibb and Nass Valley
If you would invest 0.26 in Nass Valley Gateway on January 24, 2024 and sell it today you would earn a total of 2.57 from holding Nass Valley Gateway or generate 988.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Nass Valley Gateway
Performance |
| Timeline |
| Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nass Valley Gateway |
Bristol-Myers Squibb and Nass Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol-Myers Squibb and Nass Valley
The main advantage of trading using opposite Bristol-Myers Squibb and Nass Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol-Myers Squibb position performs unexpectedly, Nass Valley 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 Nass Valley will offset losses from the drop in Nass Valley's long position.| Bristol-Myers Squibb vs. Novartis AG | Bristol-Myers Squibb vs. Bayer Aktiengesellschaft | Bristol-Myers Squibb vs. Astellas Pharma | Bristol-Myers Squibb vs. Roche Holding AG |
| Nass Valley vs. McKesson | Nass Valley vs. Cardinal Health | Nass Valley vs. Henry Schein | Nass Valley vs. Patterson Companies |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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