Correlation Between Sartorius Stedim and Mauna Kea
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Mauna Kea 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 Mauna Kea 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 Mauna Kea Technologies, you can compare the effects of market volatilities on Sartorius Stedim and Mauna Kea 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 Mauna Kea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Mauna Kea.
Diversification Opportunities for Sartorius Stedim and Mauna Kea
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sartorius and Mauna is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Mauna Kea Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mauna Kea Technologies 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 Mauna Kea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mauna Kea Technologies has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Mauna Kea go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Mauna Kea
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 0.82 times more return on investment than Mauna Kea. However, Sartorius Stedim Biotech is 1.22 times less risky than Mauna Kea. It trades about 0.0 of its potential returns per unit of risk. Mauna Kea Technologies is currently generating about -0.08 per unit of risk. If you would invest 20,146 in Sartorius Stedim Biotech on August 27, 2024 and sell it today you would lose (2,646) from holding Sartorius Stedim Biotech or give up 13.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Mauna Kea Technologies
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Mauna Kea Technologies |
Sartorius Stedim and Mauna Kea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Mauna Kea
The main advantage of trading using opposite Sartorius Stedim and Mauna Kea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Mauna Kea 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 Mauna Kea will offset losses from the drop in Mauna Kea's long position.| Sartorius Stedim vs. Eurofins Scientific SE | Sartorius Stedim vs. Teleperformance SE | Sartorius Stedim vs. Biomerieux SA | Sartorius Stedim vs. Dassault Systemes SE |
| Mauna Kea vs. LVMH Mot Hennessy | Mauna Kea vs. LOreal SA | Mauna Kea vs. Hermes International SCA | Mauna Kea vs. Manitou BF 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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