Correlation Between CVS Corp and Bristol Myer

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CVS Corp and Bristol Myer 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 CVS Corp and Bristol Myer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVS Corp and Bristol Myer Squi, you can compare the effects of market volatilities on CVS Corp and Bristol Myer 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 CVS Corp with a short position of Bristol Myer. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVS Corp and Bristol Myer.

Diversification Opportunities for CVS Corp and Bristol Myer

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between CVS Corp and Bristol is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CVS Corp and Bristol Myer Squi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristol Myer Squi and CVS Corp 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 CVS Corp are associated (or correlated) with Bristol Myer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bristol Myer Squi has no effect on the direction of CVS Corp i.e., CVS Corp and Bristol Myer go up and down completely randomly.

Pair Corralation between CVS Corp and Bristol Myer

Considering the 90-day investment horizon CVS Corp is expected to generate 3.27 times less return on investment than Bristol Myer. But when comparing it to its historical volatility, CVS Corp is 4.87 times less risky than Bristol Myer. It trades about 0.06 of its potential returns per unit of risk. Bristol Myer Squi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  102,504  in Bristol Myer Squi on September 1, 2022 and sell it today you would earn a total of  26,196  from holding Bristol Myer Squi or generate 25.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

CVS Corp  vs.  Bristol Myer Squi

 Performance (%) 
       Timeline  
CVS Corp 
CVS Corp Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, CVS Corp is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

CVS Corp Price Channel

Bristol Myer Squi 
Bristol Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bristol Myer Squi are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Bristol Myer displayed solid returns over the last few months and may actually be approaching a breakup point.

Bristol Price Channel

CVS Corp and Bristol Myer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CVS Corp and Bristol Myer

The main advantage of trading using opposite CVS Corp and Bristol Myer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVS Corp position performs unexpectedly, Bristol Myer 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 Myer will offset losses from the drop in Bristol Myer's long position.
CVS Corp vs. Concord Medical Services
CVS Corp vs. Community Health Systems
CVS Corp vs. Davita Healthcare Partners
CVS Corp vs. Hca Holdings
The idea behind CVS Corp and Bristol Myer Squi 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.
Bristol Myer vs. Netflix
Bristol Myer vs. Air Products And
Bristol Myer vs. Krispy Kreme
Bristol Myer vs. Northwest Bioth Cmn
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go