Correlation Between Federal Agricultural and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both Federal Agricultural and Sartorius Stedim 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 Federal Agricultural and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Agricultural Mortgage and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Federal Agricultural and Sartorius Stedim 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 Federal Agricultural with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Agricultural and Sartorius Stedim.
Diversification Opportunities for Federal Agricultural and Sartorius Stedim
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federal and Sartorius is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Federal Agricultural Mortgage and Sartorius Stedim Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Stedim Biotech and Federal Agricultural 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 Federal Agricultural Mortgage are associated (or correlated) with Sartorius Stedim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Stedim Biotech has no effect on the direction of Federal Agricultural i.e., Federal Agricultural and Sartorius Stedim go up and down completely randomly.
Pair Corralation between Federal Agricultural and Sartorius Stedim
Assuming the 90 days horizon Federal Agricultural Mortgage is expected to generate 0.7 times more return on investment than Sartorius Stedim. However, Federal Agricultural Mortgage is 1.44 times less risky than Sartorius Stedim. It trades about 0.06 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.04 per unit of risk. If you would invest 13,940 in Federal Agricultural Mortgage on November 6, 2024 and sell it today you would earn a total of 5,160 from holding Federal Agricultural Mortgage or generate 37.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Agricultural Mortgage vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| Federal Agricultural |
| Sartorius Stedim Biotech |
Federal Agricultural and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Agricultural and Sartorius Stedim
The main advantage of trading using opposite Federal Agricultural and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Agricultural position performs unexpectedly, Sartorius Stedim 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 Sartorius Stedim will offset losses from the drop in Sartorius Stedim's long position.| Federal Agricultural vs. CEOTRONICS | Federal Agricultural vs. Japan Post Insurance | Federal Agricultural vs. Sims Metal Management | Federal Agricultural vs. AIR PRODCHEMICALS |
| Sartorius Stedim vs. BII Railway Transportation | Sartorius Stedim vs. JD SPORTS FASH | Sartorius Stedim vs. Yuexiu Transport Infrastructure | Sartorius Stedim vs. Gaztransport Technigaz SA |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |