Correlation Between DIeteren Group and Sequana Medical
Can any of the company-specific risk be diversified away by investing in both DIeteren Group and Sequana Medical 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 DIeteren Group and Sequana Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIeteren Group SA and Sequana Medical NV, you can compare the effects of market volatilities on DIeteren Group and Sequana Medical 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 DIeteren Group with a short position of Sequana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIeteren Group and Sequana Medical.
Diversification Opportunities for DIeteren Group and Sequana Medical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DIeteren and Sequana is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DIeteren Group SA and Sequana Medical NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequana Medical NV and DIeteren Group 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 DIeteren Group SA are associated (or correlated) with Sequana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequana Medical NV has no effect on the direction of DIeteren Group i.e., DIeteren Group and Sequana Medical go up and down completely randomly.
Pair Corralation between DIeteren Group and Sequana Medical
Assuming the 90 days trading horizon DIeteren Group SA is expected to generate 0.11 times more return on investment than Sequana Medical. However, DIeteren Group SA is 9.31 times less risky than Sequana Medical. It trades about 0.08 of its potential returns per unit of risk. Sequana Medical NV is currently generating about -0.07 per unit of risk. If you would invest 16,070 in DIeteren Group SA on November 1, 2024 and sell it today you would earn a total of 290.00 from holding DIeteren Group SA or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIeteren Group SA vs. Sequana Medical NV
Performance |
| Timeline |
| DIeteren Group SA |
| Sequana Medical NV |
DIeteren Group and Sequana Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIeteren Group and Sequana Medical
The main advantage of trading using opposite DIeteren Group and Sequana Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIeteren Group position performs unexpectedly, Sequana Medical 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 Sequana Medical will offset losses from the drop in Sequana Medical's long position.| DIeteren Group vs. Ackermans Van Haaren | DIeteren Group vs. Sofina Socit Anonyme | DIeteren Group vs. Groep Brussel Lambert | DIeteren Group vs. Barco NV |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |