Correlation Between Sartorius Stedim and Coface SA
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Coface 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 Coface 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 Coface SA, you can compare the effects of market volatilities on Sartorius Stedim and Coface 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 Coface SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Coface SA.
Diversification Opportunities for Sartorius Stedim and Coface SA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sartorius and Coface is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Coface SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coface 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 Coface SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coface SA has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Coface SA go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Coface SA
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to under-perform the Coface SA. In addition to that, Sartorius Stedim is 1.46 times more volatile than Coface SA. It trades about -0.13 of its total potential returns per unit of risk. Coface SA is currently generating about -0.04 per unit of volatility. If you would invest 1,488 in Coface SA on September 2, 2024 and sell it today you would lose (24.00) from holding Coface SA 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. Coface SA
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Coface SA |
Sartorius Stedim and Coface SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Coface SA
The main advantage of trading using opposite Sartorius Stedim and Coface SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Coface 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 Coface SA will offset losses from the drop in Coface 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 |
| Coface SA vs. Amundi SA | Coface SA vs. Teleperformance SE | Coface SA vs. Eurofins Scientific SE | Coface 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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