Correlation Between Becton Dickinson and SARTORIUS

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

Diversification Opportunities for Becton Dickinson and SARTORIUS

0.26

Correlation Coefficient

Becton Dickinson  SARTORIUS

Modest diversification

The 3 months correlation between Becton and SARTORIUS is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson and and SARTORIUS AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SARTORIUS AG UNSPADR 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 SARTORIUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SARTORIUS AG UNSPADR has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and SARTORIUS go up and down completely randomly.

Pair Corralation between Becton Dickinson and SARTORIUS

Assuming the 90 days horizon Becton Dickinson and is expected to under-perform the SARTORIUS. In addition to that, Becton Dickinson is 1.24 times more volatile than SARTORIUS AG UNSPADR. It trades about -0.09 of its total potential returns per unit of risk. SARTORIUS AG UNSPADR is currently generating about -0.04 per unit of volatility. If you would invest  3,680  in SARTORIUS AG UNSPADR on April 24, 2025 and sell it today you would lose (220.00) from holding SARTORIUS AG UNSPADR or give up 5.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Becton Dickinson and  vs.  SARTORIUS AG UNSPADR

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

SARTORIUS AG UNSPADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days SARTORIUS AG UNSPADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SARTORIUS 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 SARTORIUS

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

The idea behind Becton Dickinson and and SARTORIUS AG UNSPADR 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.