Correlation Between Sartorius Aktiengesellscha and RETAIL FOOD
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By analyzing existing cross correlation between Sartorius Aktiengesellschaft and RETAIL FOOD GROUP, you can compare the effects of market volatilities on Sartorius Aktiengesellscha and RETAIL FOOD 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 Sartorius Aktiengesellscha with a short position of RETAIL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Aktiengesellscha and RETAIL FOOD.
Diversification Opportunities for Sartorius Aktiengesellscha and RETAIL FOOD
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sartorius and RETAIL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Aktiengesellschaft and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD GROUP and Sartorius Aktiengesellscha 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 Sartorius Aktiengesellschaft are associated (or correlated) with RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of Sartorius Aktiengesellscha i.e., Sartorius Aktiengesellscha and RETAIL FOOD go up and down completely randomly.
Pair Corralation between Sartorius Aktiengesellscha and RETAIL FOOD
Assuming the 90 days trading horizon Sartorius Aktiengesellschaft is expected to generate 0.12 times more return on investment than RETAIL FOOD. However, Sartorius Aktiengesellschaft is 8.34 times less risky than RETAIL FOOD. It trades about 0.01 of its potential returns per unit of risk. RETAIL FOOD GROUP is currently generating about -0.23 per unit of risk. If you would invest 23,000 in Sartorius Aktiengesellschaft on September 13, 2024 and sell it today you would lose (10.00) from holding Sartorius Aktiengesellschaft or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sartorius Aktiengesellschaft vs. RETAIL FOOD GROUP
Performance |
| Timeline |
| Sartorius Aktiengesellscha |
| RETAIL FOOD GROUP |
Sartorius Aktiengesellscha and RETAIL FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Aktiengesellscha and RETAIL FOOD
The main advantage of trading using opposite Sartorius Aktiengesellscha and RETAIL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Aktiengesellscha position performs unexpectedly, RETAIL FOOD 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 RETAIL FOOD will offset losses from the drop in RETAIL FOOD's long position.The idea behind Sartorius Aktiengesellschaft and RETAIL FOOD GROUP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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