Correlation Between CR Bard and West Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both CR Bard and West Pharmaceutical 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 CR Bard and West Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CR Bard and West Pharmaceutical Services, you can compare the effects of market volatilities on CR Bard and West Pharmaceutical 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 CR Bard with a short position of West Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CR Bard and West Pharmaceutical.
Diversification Opportunities for CR Bard and West Pharmaceutical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BCR and West is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CR Bard and West Pharmaceutical Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West Pharmaceutical and CR Bard 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 CR Bard are associated (or correlated) with West Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West Pharmaceutical has no effect on the direction of CR Bard i.e., CR Bard and West Pharmaceutical go up and down completely randomly.
Pair Corralation between CR Bard and West Pharmaceutical
If you would invest (100.00) in CR Bard on January 24, 2024 and sell it today you would earn a total of 100.00 from holding CR Bard 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 |
CR Bard vs. West Pharmaceutical Services
Performance |
| Timeline |
| CR Bard |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| West Pharmaceutical |
CR Bard and West Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CR Bard and West Pharmaceutical
The main advantage of trading using opposite CR Bard and West Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CR Bard position performs unexpectedly, West Pharmaceutical 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 West Pharmaceutical will offset losses from the drop in West Pharmaceutical's long position.| CR Bard vs. AMCON Distributing | CR Bard vs. Western Digital | CR Bard vs. Analog Devices | CR Bard vs. Premium Beverage Group |
| West Pharmaceutical vs. HealthStream | West Pharmaceutical vs. National Research Corp | West Pharmaceutical vs. HealthEquity | West Pharmaceutical vs. Health Catalyst |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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