Correlation Between Bristol Myers and Ping An

Can any of the company-specific risk be diversified away by investing in both Bristol Myers and Ping An 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 Ping An 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 Ping An Biomedical, you can compare the effects of market volatilities on Bristol Myers and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myers and Ping An.

Diversification Opportunities for Bristol Myers and Ping An

0.68

Correlation Coefficient

Bristol Myers  Ping An

Poor diversification

The 3 months correlation between Bristol and Ping is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and Ping An Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Biomedical 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Biomedical has no effect on the direction of Bristol Myers i.e., Bristol Myers and Ping An go up and down completely randomly.

Pair Corralation between Bristol Myers and Ping An

Assuming the 90 days horizon Bristol Myers Squibb is expected to generate 0.22 times more return on investment than Ping An. However, Bristol Myers Squibb is 4.47 times less risky than Ping An. It trades about -0.05 of its potential returns per unit of risk. Ping An Biomedical is currently generating about -0.17 per unit of risk. If you would invest  75,000  in Bristol Myers Squibb on August 5, 2025 and sell it today you would lose (1,000.00) from holding Bristol Myers Squibb or give up 1.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bristol Myers Squibb  vs.  Ping An Biomedical

Bristol Myers Squibb

Risk-Adjusted Performance

Weakest

Over the last 90 days Bristol Myers Squibb has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Bristol Myers is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Ping An Biomedical

Risk-Adjusted Performance

Weakest

Over the last 90 days Ping An Biomedical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Bristol Myers and Ping An

The main advantage of trading using opposite Bristol Myers and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myers position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.

The idea behind Bristol Myers Squibb and Ping An Biomedical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.