Correlation Between Sartorius Stedim and Amplitude Surgical
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Amplitude Surgical 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 Amplitude Surgical 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 Amplitude Surgical SAS, you can compare the effects of market volatilities on Sartorius Stedim and Amplitude Surgical 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 Amplitude Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Amplitude Surgical.
Diversification Opportunities for Sartorius Stedim and Amplitude Surgical
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sartorius and Amplitude is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Amplitude Surgical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitude Surgical SAS 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 Amplitude Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitude Surgical SAS has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Amplitude Surgical go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Amplitude Surgical
Assuming the 90 days trading horizon Sartorius Stedim is expected to generate 2.33 times less return on investment than Amplitude Surgical. In addition to that, Sartorius Stedim is 1.45 times more volatile than Amplitude Surgical SAS. It trades about 0.01 of its total potential returns per unit of risk. Amplitude Surgical SAS is currently generating about 0.05 per unit of volatility. If you would invest 292.00 in Amplitude Surgical SAS on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Amplitude Surgical SAS or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Amplitude Surgical SAS
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Amplitude Surgical SAS |
Sartorius Stedim and Amplitude Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Amplitude Surgical
The main advantage of trading using opposite Sartorius Stedim and Amplitude Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Amplitude Surgical 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 Amplitude Surgical will offset losses from the drop in Amplitude Surgical'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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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