Correlation Between Repligen and Becton Dickinson
Can any of the company-specific risk be diversified away by investing in both Repligen 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 Repligen and Becton Dickinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Becton Dickinson and, you can compare the effects of market volatilities on Repligen 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 Repligen with a short position of Becton Dickinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Becton Dickinson.
Diversification Opportunities for Repligen and Becton Dickinson
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Repligen and Becton is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Becton Dickinson and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becton Dickinson and Repligen 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 Repligen 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 Repligen i.e., Repligen and Becton Dickinson go up and down completely randomly.
Pair Corralation between Repligen and Becton Dickinson
Given the investment horizon of 90 days Repligen is expected to generate 2.75 times more return on investment than Becton Dickinson. However, Repligen is 2.75 times more volatile than Becton Dickinson and. It trades about 0.09 of its potential returns per unit of risk. Becton Dickinson and is currently generating about -0.17 per unit of risk. If you would invest 13,721 in Repligen on August 28, 2024 and sell it today you would earn a total of 885.00 from holding Repligen or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Becton Dickinson and
Performance |
| Timeline |
| Repligen |
| Becton Dickinson |
Repligen and Becton Dickinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Becton Dickinson
The main advantage of trading using opposite Repligen and Becton Dickinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen 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.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Becton Dickinson vs. Heartbeam | Becton Dickinson vs. EUDA Health Holdings | Becton Dickinson vs. Nutex Health | Becton Dickinson vs. Healthcare Triangle |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |