Correlation Between Becton Dickinson and Microbot Medical

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

Diversification Opportunities for Becton Dickinson and Microbot Medical

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Becton and Microbot is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Becton Dickinson And and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical 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 Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of Becton Dickinson i.e., Becton Dickinson and Microbot Medical go up and down completely randomly.

Pair Corralation between Becton Dickinson and Microbot Medical

Considering the 90-day investment horizon Becton Dickinson And is expected to generate 0.29 times more return on investment than Microbot Medical. However, Becton Dickinson And is 3.47 times less risky than Microbot Medical. It trades about 0.01 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.0 per unit of risk. If you would invest  22,830  in Becton Dickinson And on June 27, 2022 and sell it today you would earn a total of  562.00  from holding Becton Dickinson And or generate 2.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Becton Dickinson And  vs.  Microbot Medical

 Performance (%) 
       Timeline  
Becton Dickinson And 
Becton Performance
0 of 100
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 current stock price disturbance, may contribute to short-term losses for the investors.

Becton Price Channel

Microbot Medical 
Microbot Performance
0 of 100
Over the last 90 days Microbot Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Microbot Medical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Microbot Price Channel

Becton Dickinson and Microbot Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Becton Dickinson and Microbot Medical

The main advantage of trading using opposite Becton Dickinson and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becton Dickinson position performs unexpectedly, Microbot 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.
Becton Dickinson vs. Industrias Bachoco SA
The idea behind Becton Dickinson And and Microbot Medical 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.
Microbot Medical vs. Industrias Bachoco SA
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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