Correlation Between Becton Dickinson and G Medical

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

Diversification Opportunities for Becton Dickinson and G Medical

0.0

Correlation Coefficient

Becton Dickinson  G Medical

Pay attention - limited upside

The 3 months correlation between Becton and GMVD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson and and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations 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 G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and G Medical go up and down completely randomly.

Pair Corralation between Becton Dickinson and G Medical

If you would invest  22,745  in Becton Dickinson and on December 27, 2024 and sell it today you would earn a total of  126.00  from holding Becton Dickinson and or generate 0.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Becton Dickinson and  vs.  G Medical Innovations

Becton Dickinson

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Becton Dickinson and are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

G Medical Innovations

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Medical Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, G Medical is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Becton Dickinson and G Medical

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

The idea behind Becton Dickinson and and G Medical Innovations 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.