Correlation Between FactSet Research and SENSATA
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By analyzing existing cross correlation between FactSet Research Systems and SENSATA TECHNOLOGIES INC, you can compare the effects of market volatilities on FactSet Research and SENSATA 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 FactSet Research with a short position of SENSATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and SENSATA.
Diversification Opportunities for FactSet Research and SENSATA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FactSet and SENSATA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and SENSATA TECHNOLOGIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENSATA TECHNOLOGIES INC and FactSet Research 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 FactSet Research Systems are associated (or correlated) with SENSATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENSATA TECHNOLOGIES INC has no effect on the direction of FactSet Research i.e., FactSet Research and SENSATA go up and down completely randomly.
Pair Corralation between FactSet Research and SENSATA
Considering the 90-day investment horizon FactSet Research Systems is expected to generate 1.24 times more return on investment than SENSATA. However, FactSet Research is 1.24 times more volatile than SENSATA TECHNOLOGIES INC. It trades about 0.32 of its potential returns per unit of risk. SENSATA TECHNOLOGIES INC is currently generating about -0.21 per unit of risk. If you would invest 45,380 in FactSet Research Systems on August 31, 2024 and sell it today you would earn a total of 3,687 from holding FactSet Research Systems or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
FactSet Research Systems vs. SENSATA TECHNOLOGIES INC
Performance |
| Timeline |
| FactSet Research Systems |
| SENSATA TECHNOLOGIES INC |
FactSet Research and SENSATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and SENSATA
The main advantage of trading using opposite FactSet Research and SENSATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research position performs unexpectedly, SENSATA 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 SENSATA will offset losses from the drop in SENSATA's long position.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| SENSATA vs. AEP TEX INC | SENSATA vs. US BANK NATIONAL | SENSATA vs. FactSet Research Systems | SENSATA vs. Golden Agri Resources |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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