Correlation Between Bristol Myers and Pandora Media
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Pandora Media 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 and Pandora Media 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 Pandora Media, you can compare the effects of market volatilities on Bristol Myers and Pandora Media 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 Pandora Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Pandora Media.
Diversification Opportunities for Bristol Myers and Pandora Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and Pandora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Pandora Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pandora Media 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 are associated (or correlated) with Pandora Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pandora Media has no effect on the direction of Bristol Myers i.e., Bristol Myers and Pandora Media go up and down completely randomly.
Pair Corralation between Bristol Myers and Pandora Media
If you would invest (100.00) in Pandora Media on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Pandora Media 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 |
Bristol Myers Squibb vs. Pandora Media
Performance |
| Timeline |
| Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pandora Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bristol Myers and Pandora Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Pandora Media
The main advantage of trading using opposite Bristol Myers and Pandora Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Pandora Media 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 Pandora Media will offset losses from the drop in Pandora Media's long position.| Bristol Myers vs. Novartis AG | Bristol Myers vs. Bayer Aktiengesellschaft | Bristol Myers vs. Astellas Pharma | Bristol Myers vs. Roche Holding AG |
| Pandora Media vs. Cedar Realty Trust | Pandora Media vs. Cardinal Health | Pandora Media vs. National Vision Holdings | Pandora Media vs. Asbury Automotive Group |
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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