Correlation Between 00108WAF7 and Bristol Myers
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By analyzing existing cross correlation between AEP TEX INC and Bristol Myers Squibb, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Bristol Myers.
Diversification Opportunities for 00108WAF7 and Bristol Myers
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between 00108WAF7 and Bristol is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX 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 00108WAF7 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 AEP TEX 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 00108WAF7 i.e., 00108WAF7 and Bristol Myers go up and down completely randomly.
Pair Corralation between 00108WAF7 and Bristol Myers
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 41.94 times more return on investment than Bristol Myers. However, 00108WAF7 is 41.94 times more volatile than Bristol Myers Squibb. It trades about 0.13 of its potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.15 per unit of risk. If you would invest 7,797 in AEP TEX INC on September 23, 2024 and sell it today you would lose (129.00) from holding AEP TEX INC or give up 1.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 75.0% |
Values | Daily Returns |
AEP TEX INC vs. Bristol Myers Squibb
Performance |
Timeline |
AEP TEX INC |
Bristol Myers Squibb |
00108WAF7 and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 00108WAF7 and Bristol Myers
The main advantage of trading using opposite 00108WAF7 and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. BKV Corporation | 00108WAF7 vs. Bristol Myers Squibb | 00108WAF7 vs. Zenvia Inc |
Bristol Myers vs. Novartis AG | Bristol Myers vs. Bayer AG | 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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