Correlation Between Canadian Overseas and Bristol Myers
Can any of the company-specific risk be diversified away by investing in both Canadian Overseas 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 Canadian Overseas and Bristol Myers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Overseas Petroleum and Bristol Myers Squibb, you can compare the effects of market volatilities on Canadian Overseas 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 Canadian Overseas with a short position of Bristol Myers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Overseas and Bristol Myers.
Diversification Opportunities for Canadian Overseas and Bristol Myers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and Bristol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Overseas Petroleum 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 Canadian Overseas 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 Canadian Overseas Petroleum 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 Canadian Overseas i.e., Canadian Overseas and Bristol Myers go up and down completely randomly.
Pair Corralation between Canadian Overseas and Bristol Myers
If you would invest 0.20 in Canadian Overseas Petroleum on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Canadian Overseas Petroleum or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Canadian Overseas Petroleum vs. Bristol Myers Squibb
Performance |
| Timeline |
| Canadian Overseas |
| Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canadian Overseas and Bristol Myers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Overseas and Bristol Myers
The main advantage of trading using opposite Canadian Overseas and Bristol Myers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Overseas 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.| Canadian Overseas vs. Compania de Minas | Canadian Overseas vs. McEwen Mining | Canadian Overseas vs. Endeavour Silver Corp | Canadian Overseas vs. Hecla Mining |
| Bristol Myers vs. Novartis AG | Bristol Myers vs. Bayer Aktiengesellschaft | 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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