Correlation Between Singapore Exchange and Becton Dickinson
Can any of the company-specific risk be diversified away by investing in both Singapore Exchange 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 Singapore Exchange and Becton Dickinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Exchange Ltd and Becton Dickinson and, you can compare the effects of market volatilities on Singapore Exchange 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 Singapore Exchange with a short position of Becton Dickinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Exchange and Becton Dickinson.
Diversification Opportunities for Singapore Exchange and Becton Dickinson
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Becton is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Exchange Ltd and Becton Dickinson and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becton Dickinson and Singapore Exchange 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 Singapore Exchange Ltd 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 Singapore Exchange i.e., Singapore Exchange and Becton Dickinson go up and down completely randomly.
Pair Corralation between Singapore Exchange and Becton Dickinson
Assuming the 90 days horizon Singapore Exchange Ltd is expected to under-perform the Becton Dickinson. But the pink sheet apears to be less risky and, when comparing its historical volatility, Singapore Exchange Ltd is 1.38 times less risky than Becton Dickinson. The pink sheet trades about -0.35 of its potential returns per unit of risk. The Becton Dickinson and is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 23,787 in Becton Dickinson and on January 20, 2024 and sell it today you would lose (472.00) from holding Becton Dickinson and or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Exchange Ltd vs. Becton Dickinson and
Performance |
| Timeline |
| Singapore Exchange |
| Becton Dickinson |
Singapore Exchange and Becton Dickinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Exchange and Becton Dickinson
The main advantage of trading using opposite Singapore Exchange and Becton Dickinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Exchange 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.| Singapore Exchange vs. MSCI Inc | Singapore Exchange vs. Otc Markets Group | Singapore Exchange vs. Dun Bradstreet Holdings |
| Becton Dickinson vs. Agilent Technologies | Becton Dickinson vs. Illumina | Becton Dickinson vs. Waters | Becton Dickinson vs. Thermo Fisher Scientific |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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