Correlation Between Becton Dickinson and Nutex Health
Can any of the company-specific risk be diversified away by investing in both Becton Dickinson and Nutex Health 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 Nutex Health 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 Nutex Health, you can compare the effects of market volatilities on Becton Dickinson and Nutex Health 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 Nutex Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becton Dickinson and Nutex Health.
Diversification Opportunities for Becton Dickinson and Nutex Health
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Becton and Nutex is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson and and Nutex Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutex Health 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 Nutex Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutex Health has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and Nutex Health go up and down completely randomly.
Pair Corralation between Becton Dickinson and Nutex Health
Considering the 90-day investment horizon Becton Dickinson and is expected to under-perform the Nutex Health. But the stock apears to be less risky and, when comparing its historical volatility, Becton Dickinson and is 6.22 times less risky than Nutex Health. The stock trades about -0.18 of its potential returns per unit of risk. The Nutex Health is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,354 in Nutex Health on August 31, 2024 and sell it today you would earn a total of 1,366 from holding Nutex Health or generate 58.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Becton Dickinson and vs. Nutex Health
Performance |
| Timeline |
| Becton Dickinson |
| Nutex Health |
Becton Dickinson and Nutex Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Becton Dickinson and Nutex Health
The main advantage of trading using opposite Becton Dickinson and Nutex Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becton Dickinson position performs unexpectedly, Nutex Health 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 Nutex Health will offset losses from the drop in Nutex Health's long position.| Becton Dickinson vs. Teleflex Incorporated | Becton Dickinson vs. The Cooper Companies, | Becton Dickinson vs. West Pharmaceutical Services | Becton Dickinson vs. ICU Medical |
| Nutex Health vs. Evolent Health | Nutex Health vs. Simulations Plus | Nutex Health vs. Privia Health Group | Nutex Health vs. HealthStream |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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