Correlation Between Becton Dickinson and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Becton Dickinson and Microbot Medical 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 Microbot Medical 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 Microbot Medical, you can compare the effects of market volatilities on Becton Dickinson and Microbot Medical 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 Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becton Dickinson and Microbot Medical.
Diversification Opportunities for Becton Dickinson and Microbot Medical
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Becton and Microbot is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson and and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical 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 Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and Microbot Medical go up and down completely randomly.
Pair Corralation between Becton Dickinson and Microbot Medical
Considering the 90-day investment horizon Becton Dickinson is expected to generate 19.5 times less return on investment than Microbot Medical. But when comparing it to its historical volatility, Becton Dickinson and is 33.86 times less risky than Microbot Medical. It trades about 0.36 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 97.00 in Microbot Medical on October 22, 2024 and sell it today you would earn a total of 67.00 from holding Microbot Medical or generate 69.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Becton Dickinson and vs. Microbot Medical
Performance |
| Timeline |
| Becton Dickinson |
| Microbot Medical |
Becton Dickinson and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Becton Dickinson and Microbot Medical
The main advantage of trading using opposite Becton Dickinson and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becton Dickinson position performs unexpectedly, Microbot Medical 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.| Becton Dickinson vs. Haemonetics | Becton Dickinson vs. The Cooper Companies, | Becton Dickinson vs. ICU Medical | Becton Dickinson vs. AngioDynamics |
| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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