Correlation Between Becton Dickinson and Advanced Medical

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

Diversification Opportunities for Becton Dickinson and Advanced Medical

0.0

Correlation Coefficient

Becton Dickinson  Advanced Medical

Pay attention - limited upside

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

Pair Corralation between Becton Dickinson and Advanced Medical

If you would invest  0.00  in Advanced Medical Solutions on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Advanced Medical Solutions or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Becton Dickinson and  vs.  Advanced Medical Solutions

Becton Dickinson

Risk-Adjusted Performance

Very Weak

Over the last 90 days Becton Dickinson and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Advanced Medical Sol

Risk-Adjusted Performance

OK

Over the last 90 days Advanced Medical Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Advanced Medical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Becton Dickinson and Advanced Medical

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

The idea behind Becton Dickinson and and Advanced Medical Solutions 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.