Correlation Between Intel and Bristol-Myers Squibb
Can any of the company-specific risk be diversified away by investing in both Intel and Bristol-Myers Squibb 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 Intel and Bristol-Myers Squibb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Bristol Myers Squibb, you can compare the effects of market volatilities on Intel and Bristol-Myers Squibb 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 Intel with a short position of Bristol-Myers Squibb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Bristol-Myers Squibb.
Diversification Opportunities for Intel and Bristol-Myers Squibb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and Bristol-Myers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel are associated (or correlated) with Bristol-Myers Squibb. 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 Intel i.e., Intel and Bristol-Myers Squibb go up and down completely randomly.
Pair Corralation between Intel and Bristol-Myers Squibb
If you would invest 4,440 in Intel on December 29, 2023 and sell it today you would lose (23.00) from holding Intel or give up 0.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Intel vs. Bristol-Myers Squibb
Performance |
Timeline |
Intel |
Bristol-Myers Squibb |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Intel and Bristol-Myers Squibb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intel and Bristol-Myers Squibb
The main advantage of trading using opposite Intel and Bristol-Myers Squibb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Bristol-Myers Squibb 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 Squibb will offset losses from the drop in Bristol-Myers Squibb's long position.Intel vs. Diodes Incorporated | Intel vs. Microchip Technology | Intel vs. Micron Technology | Intel vs. MagnaChip Semiconductor |
Bristol-Myers Squibb vs. Playa Hotels Resorts | Bristol-Myers Squibb vs. Summit Hotel Properties | Bristol-Myers Squibb vs. The Cheesecake Factory | Bristol-Myers Squibb vs. Allient |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
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 | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |