Correlation Between Bristol Myers and Ivy Science
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Ivy Science 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 and Ivy Science 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 Ivy Science And, you can compare the effects of market volatilities on Bristol Myers and Ivy Science 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 with a short position of Ivy Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Ivy Science.
Diversification Opportunities for Bristol Myers and Ivy Science
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bristol and Ivy is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Ivy Science And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Science And and Bristol Myers 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 Ivy Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Science And has no effect on the direction of Bristol Myers i.e., Bristol Myers and Ivy Science go up and down completely randomly.
Pair Corralation between Bristol Myers and Ivy Science
Considering the 90-day investment horizon Bristol Myers Squibb is expected to under-perform the Ivy Science. But the stock apears to be less risky and, when comparing its historical volatility, Bristol Myers Squibb is 1.38 times less risky than Ivy Science. The stock trades about -0.05 of its potential returns per unit of risk. The Ivy Science And is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,973 in Ivy Science And on January 25, 2024 and sell it today you would earn a total of 1,736 from holding Ivy Science And or generate 34.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristol Myers Squibb vs. Ivy Science And
Performance |
| Timeline |
| Bristol Myers Squibb |
| Ivy Science And |
Bristol Myers and Ivy Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Ivy Science
The main advantage of trading using opposite Bristol Myers and Ivy Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Ivy Science 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 Ivy Science will offset losses from the drop in Ivy Science's long position.| Bristol Myers vs. Silver Spike Investment | Bristol Myers vs. Alkermes Plc | Bristol Myers vs. Eagle Pharmaceuticals | Bristol Myers vs. Evotec SE ADR |
| Ivy Science vs. VivoPower International PLC | Ivy Science vs. Exela Technologies Preferred | Ivy Science vs. Wetouch Technology Common | Ivy Science vs. Ivy Large Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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