Correlation Between Caspian Services and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Caspian Services 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 Caspian Services and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caspian Services and Bristol Myers Squibb, you can compare the effects of market volatilities on Caspian Services 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 Caspian Services with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caspian Services and Bristol Myers.
Diversification Opportunities for Caspian Services and Bristol Myers
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caspian and Bristol is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Caspian Services 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 Caspian Services 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 Caspian Services 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 Caspian Services i.e., Caspian Services and Bristol Myers go up and down completely randomly.
Pair Corralation between Caspian Services and Bristol Myers
If you would invest 0.40 in Caspian Services on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Caspian Services or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Caspian Services vs. Bristol Myers Squibb
Performance |
Timeline |
Caspian Services |
Bristol Myers Squibb |
Caspian Services and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caspian Services and Bristol Myers
The main advantage of trading using opposite Caspian Services and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caspian Services 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.Caspian Services vs. Stamper Oil Gas | Caspian Services vs. Valeura Energy | Caspian Services vs. Invictus Energy Limited | Caspian Services vs. ConnectOne Bancorp |
Bristol Myers vs. Oric Pharmaceuticals | Bristol Myers vs. Lyra Therapeutics | Bristol Myers vs. Inhibrx | Bristol Myers vs. ESSA Pharma |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |