Correlation Between Becton Dickinson and PACS Group,

Can any of the company-specific risk be diversified away by investing in both Becton Dickinson and PACS Group, 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 PACS Group, 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 PACS Group,, you can compare the effects of market volatilities on Becton Dickinson and PACS Group, 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 PACS Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becton Dickinson and PACS Group,.

Diversification Opportunities for Becton Dickinson and PACS Group,

0.84

Correlation Coefficient

Becton Dickinson  PACS Group,

Very poor diversification

The 3 months correlation between Becton and PACS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson and and PACS Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACS Group, 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 PACS Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACS Group, has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and PACS Group, go up and down completely randomly.

Pair Corralation between Becton Dickinson and PACS Group,

Considering the 90-day investment horizon Becton Dickinson and is expected to generate 0.17 times more return on investment than PACS Group,. However, Becton Dickinson and is 5.87 times less risky than PACS Group,. It trades about -0.06 of its potential returns per unit of risk. PACS Group, is currently generating about -0.16 per unit of risk. If you would invest  23,230  in Becton Dickinson and on September 5, 2024 and sell it today you would lose (1,104) from holding Becton Dickinson and or give up 4.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Becton Dickinson and  vs.  PACS Group,

Becton Dickinson

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Becton Dickinson and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Becton Dickinson is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

PACS Group,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PACS Group, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Becton Dickinson and PACS Group,

The main advantage of trading using opposite Becton Dickinson and PACS Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becton Dickinson position performs unexpectedly, PACS Group, 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 PACS Group, will offset losses from the drop in PACS Group,'s long position.

The idea behind Becton Dickinson and and PACS Group, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.