Correlation Between Stevanato Group and Suburban Propane
Can any of the company-specific risk be diversified away by investing in both Stevanato Group and Suburban Propane 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 Stevanato Group and Suburban Propane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stevanato Group SpA and Suburban Propane Partners, you can compare the effects of market volatilities on Stevanato Group and Suburban Propane 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 Stevanato Group with a short position of Suburban Propane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stevanato Group and Suburban Propane.
Diversification Opportunities for Stevanato Group and Suburban Propane
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stevanato and Suburban is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA and Suburban Propane Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suburban Propane Partners and Stevanato Group 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 Stevanato Group SpA are associated (or correlated) with Suburban Propane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suburban Propane Partners has no effect on the direction of Stevanato Group i.e., Stevanato Group and Suburban Propane go up and down completely randomly.
Pair Corralation between Stevanato Group and Suburban Propane
Given the investment horizon of 90 days Stevanato Group SpA is expected to generate 1.89 times more return on investment than Suburban Propane. However, Stevanato Group is 1.89 times more volatile than Suburban Propane Partners. It trades about 0.02 of its potential returns per unit of risk. Suburban Propane Partners is currently generating about 0.02 per unit of risk. If you would invest 2,005 in Stevanato Group SpA on September 1, 2024 and sell it today you would lose (2.00) from holding Stevanato Group SpA or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stevanato Group SpA vs. Suburban Propane Partners
Performance |
| Timeline |
| Stevanato Group SpA |
| Suburban Propane Partners |
Stevanato Group and Suburban Propane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stevanato Group and Suburban Propane
The main advantage of trading using opposite Stevanato Group and Suburban Propane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stevanato Group position performs unexpectedly, Suburban Propane 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 Suburban Propane will offset losses from the drop in Suburban Propane's long position.| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. Atmos Energy | Suburban Propane vs. One Gas | Suburban Propane vs. NiSource |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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