Correlation Between Bristol Myers and Pfizer
Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Pfizer 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 Pfizer 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 Pfizer Inc, you can compare the effects of market volatilities on Bristol Myers and Pfizer 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 Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Pfizer.
Diversification Opportunities for Bristol Myers and Pfizer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol and Pfizer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc 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 Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Bristol Myers i.e., Bristol Myers and Pfizer go up and down completely randomly.
Pair Corralation between Bristol Myers and Pfizer
If you would invest (100.00) in Bristol Myers Squibb on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Bristol Myers Squibb 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 |
Bristol Myers Squibb vs. Pfizer Inc
Performance |
| Timeline |
| Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pfizer Inc |
Bristol Myers and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristol Myers and Pfizer
The main advantage of trading using opposite Bristol Myers and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.| Bristol Myers vs. Novartis AG | Bristol Myers vs. Bayer Aktiengesellschaft | Bristol Myers vs. Astellas Pharma | Bristol Myers vs. Roche Holding AG |
| Pfizer vs. Alkermes Plc | Pfizer vs. Ironwood Pharmaceuticals | Pfizer vs. Deciphera Pharmaceuticals LLC | Pfizer vs. Eagle Pharmaceuticals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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