Correlation Between Odimo and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Odimo 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 Odimo and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odimo Inc and Bristol Myers Squibb, you can compare the effects of market volatilities on Odimo 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 Odimo with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odimo and Bristol Myers.
Diversification Opportunities for Odimo and Bristol Myers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Odimo and Bristol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Odimo Inc 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 Odimo 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 Odimo Inc 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 Odimo i.e., Odimo and Bristol Myers go up and down completely randomly.
Pair Corralation between Odimo and Bristol Myers
If you would invest (100.00) in Bristol Myers Squibb on February 12, 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 | 0.0% |
Values | Daily Returns |
Odimo Inc vs. Bristol Myers Squibb
Performance |
Timeline |
Odimo Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Odimo and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Odimo and Bristol Myers
The main advantage of trading using opposite Odimo and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odimo 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.Odimo vs. Cementos Pacasmayo SAA | Odimo vs. Mattel Inc | Odimo vs. Hasbro Inc | Odimo vs. Apogee Enterprises |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |