Correlation Between Nano One and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Nano One 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 Nano One and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano One Materials and Bristol Myers Squibb, you can compare the effects of market volatilities on Nano One 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 Nano One with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano One and Bristol Myers.
Diversification Opportunities for Nano One and Bristol Myers
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nano and Bristol is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nano One Materials 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 Nano One 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 Nano One Materials 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 Nano One i.e., Nano One and Bristol Myers go up and down completely randomly.
Pair Corralation between Nano One and Bristol Myers
Assuming the 90 days horizon Nano One Materials is expected to generate 2.31 times more return on investment than Bristol Myers. However, Nano One is 2.31 times more volatile than Bristol Myers Squibb. It trades about 0.02 of its potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.0 per unit of risk. If you would invest 58.00 in Nano One Materials on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Nano One Materials or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Nano One Materials vs. Bristol Myers Squibb
Performance |
Timeline |
Nano One Materials |
Bristol Myers Squibb |
Nano One and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nano One and Bristol Myers
The main advantage of trading using opposite Nano One and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano One 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.Nano One vs. Chemours Co | Nano One vs. International Flavors Fragrances | Nano One vs. Air Products and | Nano One vs. PPG Industries |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
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 | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Global Correlations Find global opportunities by holding instruments from different markets |