Correlation Between Sartorius Stedim and Becton Dickinson
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Becton Dickinson 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 Sartorius Stedim and Becton Dickinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sartorius Stedim Biotech and Becton Dickinson and, you can compare the effects of market volatilities on Sartorius Stedim and Becton Dickinson 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 Sartorius Stedim with a short position of Becton Dickinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Becton Dickinson.
Diversification Opportunities for Sartorius Stedim and Becton Dickinson
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sartorius and Becton is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Becton Dickinson and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becton Dickinson and Sartorius Stedim 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 Sartorius Stedim Biotech are associated (or correlated) with Becton Dickinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Becton Dickinson has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Becton Dickinson go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Becton Dickinson
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to under-perform the Becton Dickinson. In addition to that, Sartorius Stedim is 2.35 times more volatile than Becton Dickinson and. It trades about -0.02 of its total potential returns per unit of risk. Becton Dickinson and is currently generating about 0.0 per unit of volatility. If you would invest 21,309 in Becton Dickinson and on September 12, 2024 and sell it today you would lose (149.00) from holding Becton Dickinson and or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Becton Dickinson and
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Becton Dickinson |
Sartorius Stedim and Becton Dickinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Becton Dickinson
The main advantage of trading using opposite Sartorius Stedim and Becton Dickinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Becton Dickinson 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 Becton Dickinson will offset losses from the drop in Becton Dickinson's long position.| Sartorius Stedim vs. TFS FINANCIAL | Sartorius Stedim vs. CDN IMPERIAL BANK | Sartorius Stedim vs. National Storage Affiliates | Sartorius Stedim vs. National Bank Holdings |
| Becton Dickinson vs. Superior Plus Corp | Becton Dickinson vs. NMI Holdings | Becton Dickinson vs. SIVERS SEMICONDUCTORS AB | Becton Dickinson vs. NorAm Drilling AS |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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