Correlation Between Sartorius Stedim and Amundi SA
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Amundi SA 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 Amundi SA 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 Amundi SA, you can compare the effects of market volatilities on Sartorius Stedim and Amundi SA 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 Amundi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Amundi SA.
Diversification Opportunities for Sartorius Stedim and Amundi SA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sartorius and Amundi is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Amundi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SA 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 Amundi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SA has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Amundi SA go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Amundi SA
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 1.1 times more return on investment than Amundi SA. However, Sartorius Stedim is 1.1 times more volatile than Amundi SA. It trades about -0.02 of its potential returns per unit of risk. Amundi SA is currently generating about -0.15 per unit of risk. If you would invest 18,330 in Sartorius Stedim Biotech on September 1, 2024 and sell it today you would lose (295.00) from holding Sartorius Stedim Biotech or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Amundi SA
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Amundi SA |
Sartorius Stedim and Amundi SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Amundi SA
The main advantage of trading using opposite Sartorius Stedim and Amundi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Amundi SA 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 Amundi SA will offset losses from the drop in Amundi SA'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 |
| Amundi SA vs. Teleperformance SE | Amundi SA vs. Eurofins Scientific SE | Amundi SA vs. Sartorius Stedim Biotech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |