Correlation Between Becton Dickinson and ATRION
Can any of the company-specific risk be diversified away by investing in both Becton Dickinson and ATRION 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 ATRION 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 ATRION, you can compare the effects of market volatilities on Becton Dickinson and ATRION 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 ATRION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becton Dickinson and ATRION.
Diversification Opportunities for Becton Dickinson and ATRION
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Becton and ATRION is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson And and ATRION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRION 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 ATRION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRION has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and ATRION go up and down completely randomly.
Pair Corralation between Becton Dickinson and ATRION
If you would invest 4,816 in Becton Dickinson And on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Becton Dickinson And or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.83% |
| Values | Daily Returns |
Becton Dickinson And vs. ATRION
Performance |
| Timeline |
| Becton Dickinson And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ATRION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Becton Dickinson and ATRION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Becton Dickinson and ATRION
The main advantage of trading using opposite Becton Dickinson and ATRION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becton Dickinson position performs unexpectedly, ATRION 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 ATRION will offset losses from the drop in ATRION's long position.| Becton Dickinson vs. Brighthouse Financial | Becton Dickinson vs. Brighthouse Financial | Becton Dickinson vs. Brighthouse Financial |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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