Correlation Between PSQ Holdings and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both PSQ Holdings 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 PSQ Holdings and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSQ Holdings and Bristol Myers Squibb, you can compare the effects of market volatilities on PSQ Holdings 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 PSQ Holdings with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSQ Holdings and Bristol Myers.
Diversification Opportunities for PSQ Holdings and Bristol Myers
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PSQ and Bristol is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding PSQ Holdings 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 PSQ 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 PSQ Holdings 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 PSQ Holdings i.e., PSQ Holdings and Bristol Myers go up and down completely randomly.
Pair Corralation between PSQ Holdings and Bristol Myers
Given the investment horizon of 90 days PSQ Holdings is expected to generate 4.73 times more return on investment than Bristol Myers. However, PSQ Holdings is 4.73 times more volatile than Bristol Myers Squibb. It trades about 0.03 of its potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.03 per unit of risk. If you would invest 524.00 in PSQ Holdings on September 24, 2024 and sell it today you would lose (140.00) from holding PSQ Holdings or give up 26.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 78.71% |
Values | Daily Returns |
PSQ Holdings vs. Bristol Myers Squibb
Performance |
Timeline |
PSQ Holdings |
Bristol Myers Squibb |
PSQ Holdings and Bristol Myers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PSQ Holdings and Bristol Myers
The main advantage of trading using opposite PSQ Holdings and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSQ Holdings 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.PSQ Holdings vs. Unity Software | PSQ Holdings vs. Daily Journal Corp | PSQ Holdings vs. C3 Ai Inc | PSQ Holdings vs. A2Z Smart Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |