Correlation Between Cogent Communications and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both Cogent Communications 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 Cogent Communications and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Holdings and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Cogent Communications 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 Cogent Communications with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and Sartorius Stedim.
Diversification Opportunities for Cogent Communications and Sartorius Stedim
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cogent and Sartorius is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications 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 Cogent Communications 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 Cogent Communications 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 Cogent Communications i.e., Cogent Communications and Sartorius Stedim go up and down completely randomly.
Pair Corralation between Cogent Communications and Sartorius Stedim
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to under-perform the Sartorius Stedim. But the stock apears to be less risky and, when comparing its historical volatility, Cogent Communications Holdings is 1.07 times less risky than Sartorius Stedim. The stock trades about -0.25 of its potential returns per unit of risk. The Sartorius Stedim Biotech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 17,765 in Sartorius Stedim Biotech on September 25, 2024 and sell it today you would earn a total of 660.00 from holding Sartorius Stedim Biotech or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cogent Communications Holdings vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| Cogent Communications |
| Sartorius Stedim Biotech |
Cogent Communications and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and Sartorius Stedim
The main advantage of trading using opposite Cogent Communications and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications 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.| Cogent Communications vs. T Mobile | Cogent Communications vs. ATT Inc | Cogent Communications vs. ATT Inc | Cogent Communications vs. Deutsche Telekom AG |
| Sartorius Stedim vs. KRISPY KREME DL 01 | Sartorius Stedim vs. Fukuyama Transporting Co | Sartorius Stedim vs. Verizon Communications | Sartorius Stedim vs. Cogent Communications Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |