Correlation Between Integer Holdings and Becton Dickinson
Can any of the company-specific risk be diversified away by investing in both Integer Holdings 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 Integer Holdings and Becton Dickinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integer Holdings Corp and Becton Dickinson and, you can compare the effects of market volatilities on Integer Holdings 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 Integer Holdings with a short position of Becton Dickinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Becton Dickinson.
Diversification Opportunities for Integer Holdings and Becton Dickinson
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Integer and Becton is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Becton Dickinson and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becton Dickinson and Integer Holdings 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 Integer Holdings Corp 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 Integer Holdings i.e., Integer Holdings and Becton Dickinson go up and down completely randomly.
Pair Corralation between Integer Holdings and Becton Dickinson
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 1.27 times more return on investment than Becton Dickinson. However, Integer Holdings is 1.27 times more volatile than Becton Dickinson and. It trades about 0.2 of its potential returns per unit of risk. Becton Dickinson and is currently generating about -0.18 per unit of risk. If you would invest 12,994 in Integer Holdings Corp on August 31, 2024 and sell it today you would earn a total of 1,086 from holding Integer Holdings Corp or generate 8.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Becton Dickinson and
Performance |
| Timeline |
| Integer Holdings Corp |
| Becton Dickinson |
Integer Holdings and Becton Dickinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Becton Dickinson
The main advantage of trading using opposite Integer Holdings and Becton Dickinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings 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.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| Becton Dickinson vs. Teleflex Incorporated | Becton Dickinson vs. The Cooper Companies, | Becton Dickinson vs. West Pharmaceutical Services | Becton Dickinson vs. ICU Medical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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