Correlation Between Astar and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both Astar 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 Astar and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Astar 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 Astar with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Sartorius Stedim.
Diversification Opportunities for Astar and Sartorius Stedim
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astar and Sartorius is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Astar 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 Astar 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 Astar 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 Astar i.e., Astar and Sartorius Stedim go up and down completely randomly.
Pair Corralation between Astar and Sartorius Stedim
Assuming the 90 days trading horizon Astar is expected to generate 2.79 times more return on investment than Sartorius Stedim. However, Astar is 2.79 times more volatile than Sartorius Stedim Biotech. It trades about 0.04 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about -0.01 per unit of risk. If you would invest 4.70 in Astar on October 11, 2024 and sell it today you would earn a total of 1.31 from holding Astar or generate 27.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.96% |
| Values | Daily Returns |
Astar vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| Astar |
| Sartorius Stedim Biotech |
Astar and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Sartorius Stedim
The main advantage of trading using opposite Astar and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar 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.The idea behind Astar and Sartorius Stedim Biotech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sartorius Stedim vs. Catalyst Media Group | Sartorius Stedim vs. G5 Entertainment AB | Sartorius Stedim vs. JD Sports Fashion | Sartorius Stedim vs. Mobius Investment Trust |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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