Correlation Between Bristol Myer and Duck Creek

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Can any of the company-specific risk be diversified away by investing in both Bristol Myer and Duck Creek 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 Myer and Duck Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bristol Myer Squi and Duck Creek Technologies, you can compare the effects of market volatilities on Bristol Myer and Duck Creek 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 Myer with a short position of Duck Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myer and Duck Creek.

Diversification Opportunities for Bristol Myer and Duck Creek

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Bristol and Duck Creek is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myer Squi and Duck Creek Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duck Creek Technologies and Bristol Myer 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 Myer Squi are associated (or correlated) with Duck Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duck Creek Technologies has no effect on the direction of Bristol Myer i.e., Bristol Myer and Duck Creek go up and down completely randomly.

Pair Corralation between Bristol Myer and Duck Creek

Assuming the 90 days horizon Bristol Myer Squi is expected to under-perform the Duck Creek. But the otc stock apears to be less risky and, when comparing its historical volatility, Bristol Myer Squi is 1.04 times less risky than Duck Creek. The otc stock trades about -0.3 of its potential returns per unit of risk. The Duck Creek Technologies is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  1,488  in Duck Creek Technologies on May 11, 2022 and sell it today you would lose (74.00)  from holding Duck Creek Technologies or give up 4.97% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bristol Myer Squi  vs.  Duck Creek Technologies

 Performance (%) 
       Timeline  
Bristol Myer Squi 
Bristol Performance
0 of 100
Over the last 90 days Bristol Myer Squi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm insiders.

Bristol Price Channel

Duck Creek Technologies 
Duck Creek Performance
0 of 100
Over the last 90 days Duck Creek Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Duck Creek is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Duck Creek Price Channel

Bristol Myer and Duck Creek Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bristol Myer and Duck Creek

The main advantage of trading using opposite Bristol Myer and Duck Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myer position performs unexpectedly, Duck Creek 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 Duck Creek will offset losses from the drop in Duck Creek's long position.
The idea behind Bristol Myer Squi and Duck Creek Technologies 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.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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