Porolio Report
Group E
The three stocks chosen for this diversied porolio are Blackrock (BLK) from the Financial
Industry, Nestle (NSRGY) from the Consumer Goods industry and Bristol Myers Squibb (BMY) from the
pharmaceutical Industry. When discussing performance measures between the three assets, BLK
displayed average to high measures, an excellent D/V ra+o, although P/E ra+o is average in regards to
capital markets. NSRGY turned in a favorable ROE and an increased overall prot margin while Bristol
Myers distributes at a very high dividend payout ra+o. Analyst recommenda+ons for each of the three
stocks include a strong buy/hold.
Correla+ons between the historical returns of the porolio vary as some were nega+vely
correlated. For example, NSRGY and BMY was valued at -15.501%, with BMY and BLK displaying a
-9.867% correla+on. On the other hand, NSRGY and BLK achieved a posi+ve correla+on at 38.144% but
obviously it can be higher. The mixture of correla+ons provides a balance to the porolio as the three
individual stocks complement each other in that the posi+ve correla+on stocks move in the same
direction and the nega+ve moves the opposite respec+vely.
