Correlation Between CMG Cleantech and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both CMG Cleantech 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 CMG Cleantech and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMG Cleantech SA and Sartorius Stedim Biotech, you can compare the effects of market volatilities on CMG Cleantech 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 CMG Cleantech with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Cleantech and Sartorius Stedim.
Diversification Opportunities for CMG Cleantech and Sartorius Stedim
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CMG and Sartorius is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CMG Cleantech SA 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 CMG Cleantech 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 CMG Cleantech SA 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 CMG Cleantech i.e., CMG Cleantech and Sartorius Stedim go up and down completely randomly.
Pair Corralation between CMG Cleantech and Sartorius Stedim
Assuming the 90 days trading horizon CMG Cleantech SA is expected to generate 0.36 times more return on investment than Sartorius Stedim. However, CMG Cleantech SA is 2.74 times less risky than Sartorius Stedim. It trades about 0.01 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about -0.01 per unit of risk. If you would invest 122.00 in CMG Cleantech SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding CMG Cleantech SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CMG Cleantech SA vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| CMG Cleantech SA |
| Sartorius Stedim Biotech |
CMG Cleantech and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Cleantech and Sartorius Stedim
The main advantage of trading using opposite CMG Cleantech and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Cleantech 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.| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. NSE SA | CMG Cleantech vs. Manitou BF SA |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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