Correlation Between Otsuka Holdings and Bristol-Myers Squibb

Can any of the company-specific risk be diversified away by investing in both Otsuka Holdings and Bristol-Myers Squibb 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 Otsuka Holdings and Bristol-Myers Squibb into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Otsuka Holdings Co and Bristol Myers Squibb, you can compare the effects of market volatilities on Otsuka Holdings and Bristol-Myers Squibb 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 Otsuka Holdings with a short position of Bristol-Myers Squibb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otsuka Holdings and Bristol-Myers Squibb.

Diversification Opportunities for Otsuka Holdings and Bristol-Myers Squibb

0.0

Correlation Coefficient

Otsuka Holdings  Bristol-Myers Squibb

Pay attention - limited upside

The 3 months correlation between Otsuka and Bristol-Myers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Otsuka Holdings Co 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 Otsuka Holdings 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 Otsuka Holdings Co are associated (or correlated) with Bristol-Myers Squibb. 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 Otsuka Holdings i.e., Otsuka Holdings and Bristol-Myers Squibb go up and down completely randomly.

Pair Corralation between Otsuka Holdings and Bristol-Myers Squibb

If you would invest (100.00) in Otsuka Holdings Co on December 5, 2024 and sell it today you would earn a total of  100.00  from holding Otsuka Holdings Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Otsuka Holdings Co  vs.  Bristol Myers Squibb

Otsuka Holdings

Risk-Adjusted Performance

Very Weak

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

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 fragile performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Otsuka Holdings and Bristol-Myers Squibb

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

The idea behind Otsuka Holdings Co and Bristol Myers Squibb 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.