Correlation Between AptarGroup and Becton Dickinson
Can any of the company-specific risk be diversified away by investing in both AptarGroup 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 AptarGroup and Becton Dickinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Becton Dickinson and, you can compare the effects of market volatilities on AptarGroup 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 AptarGroup with a short position of Becton Dickinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Becton Dickinson.
Diversification Opportunities for AptarGroup and Becton Dickinson
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AptarGroup and Becton is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Becton Dickinson and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becton Dickinson and AptarGroup 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 AptarGroup 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 AptarGroup i.e., AptarGroup and Becton Dickinson go up and down completely randomly.
Pair Corralation between AptarGroup and Becton Dickinson
Considering the 90-day investment horizon AptarGroup is expected to generate 0.69 times more return on investment than Becton Dickinson. However, AptarGroup is 1.44 times less risky than Becton Dickinson. It trades about 0.07 of its potential returns per unit of risk. Becton Dickinson and is currently generating about -0.22 per unit of risk. If you would invest 14,187 in AptarGroup on January 29, 2024 and sell it today you would earn a total of 146.00 from holding AptarGroup or generate 1.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Becton Dickinson and
Performance |
Timeline |
AptarGroup |
Becton Dickinson |
AptarGroup and Becton Dickinson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Becton Dickinson
The main advantage of trading using opposite AptarGroup and Becton Dickinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup 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.AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
Becton Dickinson vs. Haemonetics | Becton Dickinson vs. The Cooper Companies | Becton Dickinson vs. ICU Medical | Becton Dickinson vs. AngioDynamics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Transaction History View history of all your transactions and understand their impact on performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |