Correlation Between Becton Dickinson and Anteris Technologies

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

Diversification Opportunities for Becton Dickinson and Anteris Technologies

0.1

Correlation Coefficient

Becton Dickinson  Anteris Technologies

Average diversification

The 3 months correlation between Becton and Anteris is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson and and Anteris Technologies Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies 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 Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and Anteris Technologies go up and down completely randomly.

Pair Corralation between Becton Dickinson and Anteris Technologies

Considering the 90-day investment horizon Becton Dickinson and is expected to under-perform the Anteris Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Becton Dickinson and is 2.48 times less risky than Anteris Technologies. The stock trades about -0.01 of its potential returns per unit of risk. The Anteris Technologies Global is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  600.00  in Anteris Technologies Global on October 23, 2024 and sell it today you would lose (1.00) from holding Anteris Technologies Global or give up 0.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	41.67%
Values	Daily Returns

Becton Dickinson and  vs.  Anteris Technologies Global

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Anteris Technologies is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Becton Dickinson and Anteris Technologies

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

The idea behind Becton Dickinson and and Anteris Technologies Global 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.