Correlation Between Bristol-Myers Squibb and Rogers Sugar

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

Diversification Opportunities for Bristol-Myers Squibb and Rogers Sugar

0.0

Correlation Coefficient

Bristol-Myers Squibb  Rogers Sugar

Pay attention - limited upside

The 3 months correlation between Bristol-Myers and Rogers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Rogers Sugar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Sugar and Bristol-Myers Squibb 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 Rogers Sugar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Sugar has no effect on the direction of Bristol-Myers Squibb i.e., Bristol-Myers Squibb and Rogers Sugar go up and down completely randomly.

Pair Corralation between Bristol-Myers Squibb and Rogers Sugar

If you would invest  0.00  in Rogers Sugar on December 1, 2024 and sell it today you would earn a total of  0.00  from holding Rogers Sugar or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.17%
Values	Daily Returns

Bristol Myers Squibb  vs.  Rogers Sugar

Bristol Myers Squibb

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bristol Myers Squibb has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's primary indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Rogers Sugar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rogers Sugar has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Rogers Sugar is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bristol-Myers Squibb and Rogers Sugar

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

The idea behind Bristol Myers Squibb and Rogers Sugar 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.