Correlation Between Pfeiffer Vacuum and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both Pfeiffer Vacuum and Sabien Technology 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 Pfeiffer Vacuum and Sabien Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfeiffer Vacuum Technology and Sabien Technology Group, you can compare the effects of market volatilities on Pfeiffer Vacuum and Sabien Technology 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 Pfeiffer Vacuum with a short position of Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfeiffer Vacuum and Sabien Technology.
Diversification Opportunities for Pfeiffer Vacuum and Sabien Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pfeiffer and Sabien is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pfeiffer Vacuum Technology and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology and Pfeiffer Vacuum 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 Pfeiffer Vacuum Technology are associated (or correlated) with Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Pfeiffer Vacuum i.e., Pfeiffer Vacuum and Sabien Technology go up and down completely randomly.
Pair Corralation between Pfeiffer Vacuum and Sabien Technology
Assuming the 90 days trading horizon Pfeiffer Vacuum Technology is expected to generate 0.16 times more return on investment than Sabien Technology. However, Pfeiffer Vacuum Technology is 6.22 times less risky than Sabien Technology. It trades about 0.04 of its potential returns per unit of risk. Sabien Technology Group is currently generating about 0.01 per unit of risk. If you would invest 15,105 in Pfeiffer Vacuum Technology on September 1, 2024 and sell it today you would earn a total of 385.00 from holding Pfeiffer Vacuum Technology or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfeiffer Vacuum Technology vs. Sabien Technology Group
Performance |
| Timeline |
| Pfeiffer Vacuum Tech |
| Sabien Technology |
Pfeiffer Vacuum and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfeiffer Vacuum and Sabien Technology
The main advantage of trading using opposite Pfeiffer Vacuum and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfeiffer Vacuum position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| Pfeiffer Vacuum vs. Uniper SE | Pfeiffer Vacuum vs. Mulberry Group PLC | Pfeiffer Vacuum vs. London Security Plc | Pfeiffer Vacuum vs. Triad Group PLC |
| Sabien Technology vs. Synchrony Financial | Sabien Technology vs. CleanTech Lithium plc | Sabien Technology vs. Virgin Wines UK | Sabien Technology vs. BW Offshore |
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 Stocks Directory module to find actively traded stocks across global markets.
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