Correlation Between ANGLER GAMING and Becton Dickinson

Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING 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 ANGLER GAMING and Becton Dickinson into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANGLER GAMING PLC and Becton Dickinson and, you can compare the effects of market volatilities on ANGLER GAMING 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 ANGLER GAMING with a short position of Becton Dickinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Becton Dickinson.

Diversification Opportunities for ANGLER GAMING and Becton Dickinson

0.67

Correlation Coefficient

ANGLER GAMING  Becton Dickinson

Poor diversification

The 3 months correlation between ANGLER and Becton is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Becton Dickinson and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becton Dickinson and ANGLER GAMING 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 ANGLER GAMING PLC 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 ANGLER GAMING i.e., ANGLER GAMING and Becton Dickinson go up and down completely randomly.

Pair Corralation between ANGLER GAMING and Becton Dickinson

Assuming the 90 days horizon ANGLER GAMING PLC is expected to generate 11.66 times more return on investment than Becton Dickinson. However, ANGLER GAMING is 11.66 times more volatile than Becton Dickinson and. It trades about 0.25 of its potential returns per unit of risk. Becton Dickinson and is currently generating about 0.28 per unit of risk. If you would invest  27.00  in ANGLER GAMING PLC on October 21, 2024 and sell it today you would earn a total of  13.00  from holding ANGLER GAMING PLC or generate 48.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.12%
Values	Daily Returns

ANGLER GAMING PLC  vs.  Becton Dickinson and

ANGLER GAMING PLC

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANGLER GAMING PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ANGLER GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Becton Dickinson

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Becton Dickinson and are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Becton Dickinson is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ANGLER GAMING and Becton Dickinson

The main advantage of trading using opposite ANGLER GAMING and Becton Dickinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING 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.

The idea behind ANGLER GAMING PLC and Becton Dickinson and 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.