Correlation Between Sartorius Stedim and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Sligro Food 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 Sartorius Stedim and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sartorius Stedim Biotech and Sligro Food Group, you can compare the effects of market volatilities on Sartorius Stedim and Sligro Food 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 Sartorius Stedim with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Sligro Food.
Diversification Opportunities for Sartorius Stedim and Sligro Food
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sartorius and Sligro is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group and Sartorius Stedim 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 Sartorius Stedim Biotech are associated (or correlated) with Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Sligro Food go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Sligro Food
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 1.96 times more return on investment than Sligro Food. However, Sartorius Stedim is 1.96 times more volatile than Sligro Food Group. It trades about 0.22 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.16 per unit of risk. If you would invest 19,061 in Sartorius Stedim Biotech on November 5, 2024 and sell it today you would earn a total of 2,969 from holding Sartorius Stedim Biotech or generate 15.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Sligro Food Group
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Sligro Food Group |
Sartorius Stedim and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Sligro Food
The main advantage of trading using opposite Sartorius Stedim and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Sartorius Stedim vs. Moneta Money Bank | Sartorius Stedim vs. Synchrony Financial | Sartorius Stedim vs. Cairn Homes PLC | Sartorius Stedim vs. Synthomer plc |
| Sligro Food vs. Beazer Homes USA | Sligro Food vs. MTI Wireless Edge | Sligro Food vs. Aptitude Software Group | Sligro Food vs. Pets at Home |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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