Correlation Between Sartorius Stedim and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and FNP 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 FNP 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 FNP Technologies SA, you can compare the effects of market volatilities on Sartorius Stedim and FNP 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 FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and FNP Technologies.
Diversification Opportunities for Sartorius Stedim and FNP Technologies
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sartorius and FNP is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP 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 FNP Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNP Technologies has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and FNP Technologies go up and down completely randomly.
Pair Corralation between Sartorius Stedim and FNP Technologies
If you would invest 18,560 in Sartorius Stedim Biotech on September 13, 2024 and sell it today you would earn a total of 715.00 from holding Sartorius Stedim Biotech or generate 3.85% 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. FNP Technologies SA
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| FNP Technologies |
Sartorius Stedim and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and FNP Technologies
The main advantage of trading using opposite Sartorius Stedim and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, FNP 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 FNP Technologies will offset losses from the drop in FNP Technologies' long position.| Sartorius Stedim vs. Eurofins Scientific SE | Sartorius Stedim vs. Teleperformance SE | Sartorius Stedim vs. Biomerieux SA | Sartorius Stedim vs. Dassault Systemes SE |
| FNP Technologies vs. Marie Brizard Wine | FNP Technologies vs. Invibes Advertising NV | FNP Technologies vs. ZCCM Investments Holdings | FNP Technologies vs. Technip Energies BV |
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 Stocks Directory module to find actively traded stocks across global markets.
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