Correlation Between Union Technologies and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both Union Technologies and Sartorius Stedim 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 Union Technologies and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Technologies Informatique and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Union Technologies and Sartorius Stedim 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 Union Technologies with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Technologies and Sartorius Stedim.
Diversification Opportunities for Union Technologies and Sartorius Stedim
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Union and Sartorius is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Union Technologies Informatiqu and Sartorius Stedim Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Stedim Biotech and Union Technologies 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 Union Technologies Informatique are associated (or correlated) with Sartorius Stedim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Stedim Biotech has no effect on the direction of Union Technologies i.e., Union Technologies and Sartorius Stedim go up and down completely randomly.
Pair Corralation between Union Technologies and Sartorius Stedim
Assuming the 90 days trading horizon Union Technologies Informatique is expected to under-perform the Sartorius Stedim. In addition to that, Union Technologies is 1.35 times more volatile than Sartorius Stedim Biotech. It trades about -0.05 of its total potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.08 per unit of volatility. 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 |
Union Technologies Informatiqu vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| Union Technologies |
| Sartorius Stedim Biotech |
Union Technologies and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Technologies and Sartorius Stedim
The main advantage of trading using opposite Union Technologies and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Technologies position performs unexpectedly, Sartorius Stedim 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 Sartorius Stedim will offset losses from the drop in Sartorius Stedim's long position.| Union Technologies vs. Linedata Services SA | Union Technologies vs. Lectra SA | Union Technologies vs. Manitou BF SA | Union Technologies vs. Ossiam Minimum Variance |
| Sartorius Stedim vs. Eurofins Scientific SE | Sartorius Stedim vs. Teleperformance SE | Sartorius Stedim vs. Biomerieux SA | Sartorius Stedim vs. Dassault Systemes SE |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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