Correlation Between Sartorius Stedim and Technip Energies
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Technip Energies 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 Technip Energies 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 Technip Energies BV, you can compare the effects of market volatilities on Sartorius Stedim and Technip Energies 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 Technip Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Technip Energies.
Diversification Opportunities for Sartorius Stedim and Technip Energies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sartorius and Technip is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Technip Energies BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technip Energies 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 Technip Energies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technip Energies has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Technip Energies go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Technip Energies
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to under-perform the Technip Energies. In addition to that, Sartorius Stedim is 1.06 times more volatile than Technip Energies BV. It trades about -0.02 of its total potential returns per unit of risk. Technip Energies BV is currently generating about 0.05 per unit of volatility. If you would invest 2,284 in Technip Energies BV on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Technip Energies BV or generate 1.84% 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. Technip Energies BV
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Technip Energies |
Sartorius Stedim and Technip Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Technip Energies
The main advantage of trading using opposite Sartorius Stedim and Technip Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Technip Energies 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 Technip Energies will offset losses from the drop in Technip Energies' long position.| Sartorius Stedim vs. Eurofins Scientific SE | Sartorius Stedim vs. Teleperformance SE | Sartorius Stedim vs. Biomerieux SA | Sartorius Stedim vs. Dassault Systemes SE |
| Technip Energies vs. Gaztransport Technigaz SAS | Technip Energies vs. TotalEnergies SE | Technip Energies vs. Neoen SA | Technip Energies vs. Rubis SCA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |