Correlation Between Systemair and Dentsply Sirona
Can any of the company-specific risk be diversified away by investing in both Systemair and Dentsply Sirona 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 Systemair and Dentsply Sirona into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Dentsply Sirona, you can compare the effects of market volatilities on Systemair and Dentsply Sirona 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 Systemair with a short position of Dentsply Sirona. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Dentsply Sirona.
Diversification Opportunities for Systemair and Dentsply Sirona
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Systemair and Dentsply is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Dentsply Sirona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dentsply Sirona and Systemair 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 Systemair AB are associated (or correlated) with Dentsply Sirona. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dentsply Sirona has no effect on the direction of Systemair i.e., Systemair and Dentsply Sirona go up and down completely randomly.
Pair Corralation between Systemair and Dentsply Sirona
Assuming the 90 days trading horizon Systemair AB is expected to generate 0.31 times more return on investment than Dentsply Sirona. However, Systemair AB is 3.2 times less risky than Dentsply Sirona. It trades about 0.28 of its potential returns per unit of risk. Dentsply Sirona is currently generating about -0.1 per unit of risk. If you would invest 8,180 in Systemair AB on September 2, 2024 and sell it today you would earn a total of 1,030 from holding Systemair AB or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Systemair AB vs. Dentsply Sirona
Performance |
| Timeline |
| Systemair AB |
| Dentsply Sirona |
Systemair and Dentsply Sirona Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Dentsply Sirona
The main advantage of trading using opposite Systemair and Dentsply Sirona positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Dentsply Sirona 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 Dentsply Sirona will offset losses from the drop in Dentsply Sirona's long position.| Systemair vs. Tyson Foods Cl | Systemair vs. Bell Food Group | Systemair vs. Tata Steel Limited | Systemair vs. JLEN Environmental Assets |
| Dentsply Sirona vs. Uniper SE | Dentsply Sirona vs. Mulberry Group PLC | Dentsply Sirona vs. London Security Plc | Dentsply Sirona vs. Triad Group PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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