Correlation Between Stevanato Group and LOEWS
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By analyzing existing cross correlation between Stevanato Group SpA and LOEWS P 6, you can compare the effects of market volatilities on Stevanato Group and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stevanato Group and LOEWS.
Diversification Opportunities for Stevanato Group and LOEWS
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stevanato and LOEWS is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA and LOEWS P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 6 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 6 has no effect on the direction of Stevanato Group i.e., Stevanato Group and LOEWS go up and down completely randomly.
Pair Corralation between Stevanato Group and LOEWS
Given the investment horizon of 90 days Stevanato Group SpA is expected to generate 5.48 times more return on investment than LOEWS. However, Stevanato Group is 5.48 times more volatile than LOEWS P 6. It trades about 0.02 of its potential returns per unit of risk. LOEWS P 6 is currently generating about 0.04 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 Together |
| Strength | Insignificant |
| Accuracy | 74.6% |
| Values | Daily Returns |
Stevanato Group SpA vs. LOEWS P 6
Performance |
| Timeline |
| Stevanato Group SpA |
| LOEWS P 6 |
Stevanato Group and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stevanato Group and LOEWS
The main advantage of trading using opposite Stevanato Group and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stevanato Group position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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