Correlation Between Cardinal Health and Becton Dickinson
Can any of the company-specific risk be diversified away by investing in both Cardinal Health 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 Cardinal Health and Becton Dickinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Becton Dickinson and, you can compare the effects of market volatilities on Cardinal Health 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 Cardinal Health with a short position of Becton Dickinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Becton Dickinson.
Diversification Opportunities for Cardinal Health and Becton Dickinson
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cardinal and Becton is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Becton Dickinson and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becton Dickinson and Cardinal Health 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 Cardinal Health 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 Cardinal Health i.e., Cardinal Health and Becton Dickinson go up and down completely randomly.
Pair Corralation between Cardinal Health and Becton Dickinson
Considering the 90-day investment horizon Cardinal Health is expected to generate 1.65 times more return on investment than Becton Dickinson. However, Cardinal Health is 1.65 times more volatile than Becton Dickinson and. It trades about 0.22 of its potential returns per unit of risk. Becton Dickinson and is currently generating about 0.03 per unit of risk. If you would invest 15,480 in Cardinal Health on October 5, 2025 and sell it today you would earn a total of 5,092 from holding Cardinal Health or generate 32.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. Becton Dickinson and
Performance |
| Timeline |
| Cardinal Health |
| Becton Dickinson |
Cardinal Health and Becton Dickinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Becton Dickinson
The main advantage of trading using opposite Cardinal Health and Becton Dickinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health 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.| Cardinal Health vs. Becton Dickinson and | Cardinal Health vs. Edwards Lifesciences Corp | Cardinal Health vs. Cencora | Cardinal Health vs. Agilent Technologies |
| Becton Dickinson vs. Edwards Lifesciences Corp | Becton Dickinson vs. Cardinal Health | Becton Dickinson vs. argenx NV ADR | Becton Dickinson vs. Alcon AG |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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