Correlation Between Sartorius Stedim and TBC Bank
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and TBC Bank 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 TBC Bank 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 TBC Bank Group, you can compare the effects of market volatilities on Sartorius Stedim and TBC Bank 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 TBC Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and TBC Bank.
Diversification Opportunities for Sartorius Stedim and TBC Bank
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sartorius and TBC is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and TBC Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TBC Bank 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 TBC Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TBC Bank Group has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and TBC Bank go up and down completely randomly.
Pair Corralation between Sartorius Stedim and TBC Bank
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 1.42 times more return on investment than TBC Bank. However, Sartorius Stedim is 1.42 times more volatile than TBC Bank Group. It trades about 0.13 of its potential returns per unit of risk. TBC Bank Group is currently generating about -0.02 per unit of risk. If you would invest 18,665 in Sartorius Stedim Biotech on October 21, 2024 and sell it today you would earn a total of 955.00 from holding Sartorius Stedim Biotech or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. TBC Bank Group
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| TBC Bank Group |
Sartorius Stedim and TBC Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and TBC Bank
The main advantage of trading using opposite Sartorius Stedim and TBC Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, TBC Bank 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 TBC Bank will offset losses from the drop in TBC Bank's long position.| Sartorius Stedim vs. Ubisoft Entertainment | Sartorius Stedim vs. Hollywood Bowl Group | Sartorius Stedim vs. Gear4music Plc | Sartorius Stedim vs. Caledonia Investments |
| TBC Bank vs. Air Products Chemicals | TBC Bank vs. Sartorius Stedim Biotech | TBC Bank vs. Micron Technology | TBC Bank vs. Playtech 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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