Correlation Between Apex Resources and Bristol-Myers Squibb
Can any of the company-specific risk be diversified away by investing in both Apex Resources 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 Apex Resources 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 Apex Resources and Bristol Myers Squibb, you can compare the effects of market volatilities on Apex Resources 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 Apex Resources with a short position of Bristol-Myers Squibb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Resources and Bristol-Myers Squibb.
Diversification Opportunities for Apex Resources and Bristol-Myers Squibb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apex and Bristol-Myers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apex Resources 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 Apex Resources 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 Apex Resources 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 Apex Resources i.e., Apex Resources and Bristol-Myers Squibb go up and down completely randomly.
Pair Corralation between Apex Resources and Bristol-Myers Squibb
If you would invest 5.18 in Apex Resources on December 30, 2023 and sell it today you would lose (0.42) from holding Apex Resources or give up 8.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Apex Resources vs. Bristol-Myers Squibb
Performance |
Timeline |
Apex Resources |
Bristol-Myers Squibb |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Apex Resources and Bristol-Myers Squibb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apex Resources and Bristol-Myers Squibb
The main advantage of trading using opposite Apex Resources and Bristol-Myers Squibb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Resources 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.Apex Resources vs. CDW Corp | Apex Resources vs. American Environmental | Apex Resources vs. Arhaus Inc | Apex Resources vs. Cardinal Health |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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