Correlation Between Entech SE and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both Entech SE 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 Entech SE and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entech SE SAS and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Entech SE 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 Entech SE with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entech SE and Sartorius Stedim.
Diversification Opportunities for Entech SE and Sartorius Stedim
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Entech and Sartorius is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Entech SE SAS 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 Entech SE 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 Entech SE SAS 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 Entech SE i.e., Entech SE and Sartorius Stedim go up and down completely randomly.
Pair Corralation between Entech SE and Sartorius Stedim
Assuming the 90 days trading horizon Entech SE SAS is expected to generate 2.66 times more return on investment than Sartorius Stedim. However, Entech SE is 2.66 times more volatile than Sartorius Stedim Biotech. It trades about 0.18 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.28 per unit of risk. If you would invest 514.00 in Entech SE SAS on September 19, 2024 and sell it today you would earn a total of 90.00 from holding Entech SE SAS or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entech SE SAS vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| Entech SE SAS |
| Sartorius Stedim Biotech |
Entech SE and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entech SE and Sartorius Stedim
The main advantage of trading using opposite Entech SE and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entech SE 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.| Entech SE vs. Voltalia SA | Entech SE vs. Waga Energy SA | Entech SE vs. Haffner Energy SA | Entech SE vs. OVH Groupe SAS |
| Sartorius Stedim vs. Spineguard | Sartorius Stedim vs. Neovacs SA | Sartorius Stedim vs. Biophytis SA | Sartorius Stedim vs. Acheter Louer |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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