Correlation Between Sartorius Stedim and OSE Pharma
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and OSE Pharma 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 OSE Pharma 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 OSE Pharma SA, you can compare the effects of market volatilities on Sartorius Stedim and OSE Pharma 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 OSE Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and OSE Pharma.
Diversification Opportunities for Sartorius Stedim and OSE Pharma
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sartorius and OSE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and OSE Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSE Pharma 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 OSE Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSE Pharma SA has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and OSE Pharma go up and down completely randomly.
Pair Corralation between Sartorius Stedim and OSE Pharma
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to under-perform the OSE Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Sartorius Stedim Biotech is 1.79 times less risky than OSE Pharma. The stock trades about -0.01 of its potential returns per unit of risk. The OSE Pharma SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 560.00 in OSE Pharma SA on November 19, 2024 and sell it today you would earn a total of 138.00 from holding OSE Pharma SA or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. OSE Pharma SA
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| OSE Pharma SA |
Sartorius Stedim and OSE Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and OSE Pharma
The main advantage of trading using opposite Sartorius Stedim and OSE Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, OSE Pharma 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 OSE Pharma will offset losses from the drop in OSE Pharma'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 |
| OSE Pharma vs. Innate Pharma | OSE Pharma vs. Quantum Genomics SA | OSE Pharma vs. Valneva SE | OSE Pharma vs. Poxel 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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