Correlation Between Bristol Myers and Kubient

Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Kubient 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 Kubient 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 Kubient, you can compare the effects of market volatilities on Bristol Myers and Kubient 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 Kubient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Kubient.

Diversification Opportunities for Bristol Myers and Kubient

-0.74

Correlation Coefficient

Bristol Myers  Kubient

Pay attention - limited upside

The 3 months correlation between Bristol and Kubient is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Kubient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kubient 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 Kubient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kubient has no effect on the direction of Bristol Myers i.e., Bristol Myers and Kubient go up and down completely randomly.

Pair Corralation between Bristol Myers and Kubient

If you would invest  84,500  in Bristol Myers Squibb on October 22, 2024 and sell it today you would earn a total of  9,022  from holding Bristol Myers Squibb or generate 10.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.61%
Values	Daily Returns

Bristol Myers Squibb  vs.  Kubient

Bristol Myers Squibb

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bristol Myers Squibb are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile primary indicators, Bristol Myers reported solid returns over the last few months and may actually be approaching a breakup point.

Kubient

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kubient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kubient is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Bristol Myers and Kubient

The main advantage of trading using opposite Bristol Myers and Kubient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Kubient 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 Kubient will offset losses from the drop in Kubient's long position.

The idea behind Bristol Myers Squibb and Kubient pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.