Correlation Between Amedica WT and Bristol-Myers Squibb
Can any of the company-specific risk be diversified away by investing in both Amedica WT 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 Amedica WT 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 Amedica WT and Bristol Myers Squibb, you can compare the effects of market volatilities on Amedica WT 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 Amedica WT with a short position of Bristol-Myers Squibb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedica WT and Bristol-Myers Squibb.
Diversification Opportunities for Amedica WT and Bristol-Myers Squibb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amedica and Bristol-Myers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amedica WT 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 Amedica WT 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 Amedica WT 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 Amedica WT i.e., Amedica WT and Bristol-Myers Squibb go up and down completely randomly.
Pair Corralation between Amedica WT and Bristol-Myers Squibb
If you would invest (100.00) in Bristol Myers Squibb on December 30, 2023 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 |
Amedica WT vs. Bristol-Myers Squibb
Performance |
Timeline |
Amedica WT |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Bristol-Myers Squibb |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Amedica WT and Bristol-Myers Squibb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amedica WT and Bristol-Myers Squibb
The main advantage of trading using opposite Amedica WT and Bristol-Myers Squibb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedica WT 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.Amedica WT vs. Texas Roadhouse | Amedica WT vs. Wabash National | Amedica WT vs. Brunswick | Amedica WT vs. BJs Restaurants |
Bristol-Myers Squibb vs. Playa Hotels Resorts | Bristol-Myers Squibb vs. Summit Hotel Properties | Bristol-Myers Squibb vs. The Cheesecake Factory | Bristol-Myers Squibb vs. Allient |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |