Correlation Between Sartorius Stedim and Groupe Sfpi
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Groupe Sfpi 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 Groupe Sfpi 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 Groupe Sfpi, you can compare the effects of market volatilities on Sartorius Stedim and Groupe Sfpi 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 Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Groupe Sfpi.
Diversification Opportunities for Sartorius Stedim and Groupe Sfpi
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sartorius and Groupe is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi 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 Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Groupe Sfpi go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Groupe Sfpi
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to under-perform the Groupe Sfpi. In addition to that, Sartorius Stedim is 1.36 times more volatile than Groupe Sfpi. It trades about -0.02 of its total potential returns per unit of risk. Groupe Sfpi is currently generating about 0.01 per unit of volatility. If you would invest 206.00 in Groupe Sfpi on August 30, 2024 and sell it today you would lose (12.00) from holding Groupe Sfpi or give up 5.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Groupe Sfpi
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Groupe Sfpi |
Sartorius Stedim and Groupe Sfpi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Groupe Sfpi
The main advantage of trading using opposite Sartorius Stedim and Groupe Sfpi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Groupe Sfpi 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 Groupe Sfpi will offset losses from the drop in Groupe Sfpi'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 |
| Groupe Sfpi vs. Aubay Socit Anonyme | Groupe Sfpi vs. Infotel SA | Groupe Sfpi vs. IT Link | Groupe Sfpi vs. Manitou BF 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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