Correlation Between Becton Dickinson and BioLife Solutions
Can any of the company-specific risk be diversified away by investing in both Becton Dickinson and BioLife Solutions 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 Becton Dickinson and BioLife Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Becton Dickinson and and BioLife Solutions, you can compare the effects of market volatilities on Becton Dickinson and BioLife Solutions 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 Becton Dickinson with a short position of BioLife Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becton Dickinson and BioLife Solutions.
Diversification Opportunities for Becton Dickinson and BioLife Solutions
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Becton and BioLife is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson and and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions and Becton Dickinson 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 Becton Dickinson and are associated (or correlated) with BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and BioLife Solutions go up and down completely randomly.
Pair Corralation between Becton Dickinson and BioLife Solutions
Considering the 90-day investment horizon Becton Dickinson and is expected to generate 0.32 times more return on investment than BioLife Solutions. However, Becton Dickinson and is 3.16 times less risky than BioLife Solutions. It trades about 0.02 of its potential returns per unit of risk. BioLife Solutions is currently generating about -0.03 per unit of risk. If you would invest 22,927 in Becton Dickinson and on December 24, 2024 and sell it today you would earn a total of 96.00 from holding Becton Dickinson and or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Becton Dickinson and vs. BioLife Solutions
Performance |
| Timeline |
| Becton Dickinson |
| BioLife Solutions |
Becton Dickinson and BioLife Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Becton Dickinson and BioLife Solutions
The main advantage of trading using opposite Becton Dickinson and BioLife Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becton Dickinson position performs unexpectedly, BioLife Solutions 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 BioLife Solutions will offset losses from the drop in BioLife Solutions' long position.| Becton Dickinson vs. Haemonetics | Becton Dickinson vs. The Cooper Companies, | Becton Dickinson vs. ICU Medical | Becton Dickinson vs. AngioDynamics |
| BioLife Solutions vs. Akoya Biosciences | BioLife Solutions vs. AtriCure | BioLife Solutions vs. ICU Medical | BioLife Solutions vs. Haemonetics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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