Correlation Between National Bank and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both National Bank 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 National Bank and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank Holdings and Sartorius Stedim Biotech, you can compare the effects of market volatilities on National Bank 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 National Bank with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Sartorius Stedim.
Diversification Opportunities for National Bank and Sartorius Stedim
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Sartorius is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings 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 National Bank 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 National Bank Holdings 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 National Bank i.e., National Bank and Sartorius Stedim go up and down completely randomly.
Pair Corralation between National Bank and Sartorius Stedim
Assuming the 90 days horizon National Bank Holdings is expected to under-perform the Sartorius Stedim. But the stock apears to be less risky and, when comparing its historical volatility, National Bank Holdings is 1.84 times less risky than Sartorius Stedim. The stock trades about -0.18 of its potential returns per unit of risk. The Sartorius Stedim Biotech is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 18,315 in Sartorius Stedim Biotech on September 13, 2024 and sell it today you would earn a total of 805.00 from holding Sartorius Stedim Biotech or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
National Bank Holdings vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| National Bank Holdings |
| Sartorius Stedim Biotech |
National Bank and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Sartorius Stedim
The main advantage of trading using opposite National Bank and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank 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.| National Bank vs. Fifth Third Bancorp | National Bank vs. Regions Financial | National Bank vs. Superior Plus Corp | National Bank vs. SIVERS SEMICONDUCTORS AB |
| Sartorius Stedim vs. Gold Road Resources | Sartorius Stedim vs. Transportadora de Gas | Sartorius Stedim vs. TITANIUM TRANSPORTGROUP | Sartorius Stedim vs. Strategic Investments AS |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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