Correlation Between Becton Dickinson and Hologic

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

Diversification Opportunities for Becton Dickinson and Hologic

0.0

Correlation Coefficient

Becton Dickinson  Hologic

Pay attention - limited upside

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

Pair Corralation between Becton Dickinson and Hologic

If you would invest (100.00) in Becton Dickinson And on February 3, 2025 and sell it today you would earn a total of  100.00  from holding Becton Dickinson And or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Becton Dickinson And  vs.  Hologic

Becton Dickinson And

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 somewhat strong basic indicators, Becton Dickinson is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hologic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hologic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Becton Dickinson and Hologic

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

The idea behind Becton Dickinson And and Hologic 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 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.