Correlation Between Sartorius Stedim and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on Sartorius Stedim and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Uniper SE.
Diversification Opportunities for Sartorius Stedim and Uniper SE
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sartorius and Uniper is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Uniper SE go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Uniper SE
Assuming the 90 days trading horizon Sartorius Stedim is expected to generate 1.63 times less return on investment than Uniper SE. But when comparing it to its historical volatility, Sartorius Stedim Biotech is 1.08 times less risky than Uniper SE. It trades about 0.09 of its potential returns per unit of risk. Uniper SE is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,127 in Uniper SE on October 13, 2024 and sell it today you would earn a total of 220.00 from holding Uniper SE or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Uniper SE
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Uniper SE |
Sartorius Stedim and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Uniper SE
The main advantage of trading using opposite Sartorius Stedim and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Sartorius Stedim vs. Walmart | Sartorius Stedim vs. BYD Co | Sartorius Stedim vs. Volkswagen AG | Sartorius Stedim vs. Volkswagen AG Non Vtg |
| Uniper SE vs. Celebrus Technologies plc | Uniper SE vs. Fortune Brands Home | Uniper SE vs. Cairn Homes PLC | Uniper SE vs. Sartorius Stedim Biotech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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