Correlation Between Sartorius Stedim and Union Technologies
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Union Technologies 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 Union Technologies 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 Union Technologies Informatique, you can compare the effects of market volatilities on Sartorius Stedim and Union Technologies 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 Union Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Union Technologies.
Diversification Opportunities for Sartorius Stedim and Union Technologies
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sartorius and Union is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Union Technologies Informatiqu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union 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 Union Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Technologies has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Union Technologies go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Union Technologies
Assuming the 90 days trading horizon Sartorius Stedim is expected to generate 2.77 times less return on investment than Union Technologies. But when comparing it to its historical volatility, Sartorius Stedim Biotech is 1.18 times less risky than Union Technologies. It trades about 0.03 of its potential returns per unit of risk. Union Technologies Informatique is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Union Technologies Informatique on September 5, 2024 and sell it today you would earn a total of 3.00 from holding Union Technologies Informatique or generate 15.79% 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. Union Technologies Informatiqu
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Union Technologies |
Sartorius Stedim and Union Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Union Technologies
The main advantage of trading using opposite Sartorius Stedim and Union Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Union Technologies 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 Union Technologies will offset losses from the drop in Union Technologies' long position.| Sartorius Stedim vs. Spineguard | Sartorius Stedim vs. Neovacs SA | Sartorius Stedim vs. Spineway | Sartorius Stedim vs. Biophytis SA |
| Union Technologies vs. ACTEOS SA | Union Technologies vs. SQLI SA | Union Technologies vs. Memscap Regpt | Union Technologies vs. Linedata Services 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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