Correlation Between SANOFI S and Sakar Healthcare
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By analyzing existing cross correlation between SANOFI S HEALTHC and Sakar Healthcare Limited, you can compare the effects of market volatilities on SANOFI S and Sakar Healthcare 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 SANOFI S with a short position of Sakar Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOFI S and Sakar Healthcare.
Diversification Opportunities for SANOFI S and Sakar Healthcare
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SANOFI and Sakar is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SANOFI S HEALTHC and Sakar Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakar Healthcare and SANOFI S 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 SANOFI S HEALTHC are associated (or correlated) with Sakar Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakar Healthcare has no effect on the direction of SANOFI S i.e., SANOFI S and Sakar Healthcare go up and down completely randomly.
Pair Corralation between SANOFI S and Sakar Healthcare
Assuming the 90 days trading horizon SANOFI S HEALTHC is expected to generate 0.3 times more return on investment than Sakar Healthcare. However, SANOFI S HEALTHC is 3.37 times less risky than Sakar Healthcare. It trades about -0.05 of its potential returns per unit of risk. Sakar Healthcare Limited is currently generating about -0.14 per unit of risk. If you would invest 482,540 in SANOFI S HEALTHC on November 19, 2024 and sell it today you would lose (11,860) from holding SANOFI S HEALTHC or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOFI S HEALTHC vs. Sakar Healthcare Limited
Performance |
| Timeline |
| SANOFI S HEALTHC |
| Sakar Healthcare |
SANOFI S and Sakar Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOFI S and Sakar Healthcare
The main advantage of trading using opposite SANOFI S and Sakar Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOFI S position performs unexpectedly, Sakar Healthcare 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 Sakar Healthcare will offset losses from the drop in Sakar Healthcare's long position.| SANOFI S vs. Mangalam Drugs And | SANOFI S vs. Aarey Drugs Pharmaceuticals | SANOFI S vs. Nazara Technologies Limited | SANOFI S vs. AXISCADES Technologies Limited |
| Sakar Healthcare vs. Vardhman Special Steels | Sakar Healthcare vs. Kalyani Steels Limited | Sakar Healthcare vs. Tata Communications Limited | Sakar Healthcare vs. Manaksia Steels Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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