Correlation Between Bristol Myer and Doubleverify Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bristol Myer and Doubleverify Holdings 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 Doubleverify Holdings 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 Doubleverify Holdings, you can compare the effects of market volatilities on Bristol Myer and Doubleverify Holdings 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 Doubleverify Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol Myer and Doubleverify Holdings.

Diversification Opportunities for Bristol Myer and Doubleverify Holdings

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between Bristol and Doubleverify is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myer Squi and Doubleverify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleverify Holdings 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 Doubleverify Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleverify Holdings has no effect on the direction of Bristol Myer i.e., Bristol Myer and Doubleverify Holdings go up and down completely randomly.

Pair Corralation between Bristol Myer and Doubleverify Holdings

Assuming the 90 days horizon Bristol Myer is expected to generate 1.14 times less return on investment than Doubleverify Holdings. In addition to that, Bristol Myer is 1.64 times more volatile than Doubleverify Holdings. It trades about 0.02 of its total potential returns per unit of risk. Doubleverify Holdings is currently generating about 0.03 per unit of volatility. If you would invest  2,577  in Doubleverify Holdings on May 14, 2022 and sell it today you would earn a total of  161.00  from holding Doubleverify Holdings or generate 6.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.31%
ValuesDaily Returns

Bristol Myer Squi  vs.  Doubleverify Holdings

 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

Doubleverify Holdings 
Doubleverify Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Doubleverify Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Doubleverify Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Doubleverify Price Channel

Bristol Myer and Doubleverify Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bristol Myer and Doubleverify Holdings

The main advantage of trading using opposite Bristol Myer and Doubleverify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol Myer position performs unexpectedly, Doubleverify Holdings 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 Doubleverify Holdings will offset losses from the drop in Doubleverify Holdings' long position.
The idea behind Bristol Myer Squi and Doubleverify Holdings 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go