Correlation Between Sensient Technologies and DANAHER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sensient Technologies and DANAHER PORATION, you can compare the effects of market volatilities on Sensient Technologies and DANAHER 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 Sensient Technologies with a short position of DANAHER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and DANAHER.
Diversification Opportunities for Sensient Technologies and DANAHER
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sensient and DANAHER is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies and DANAHER PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DANAHER PORATION and Sensient Technologies 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 Sensient Technologies are associated (or correlated) with DANAHER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DANAHER PORATION has no effect on the direction of Sensient Technologies i.e., Sensient Technologies and DANAHER go up and down completely randomly.
Pair Corralation between Sensient Technologies and DANAHER
Considering the 90-day investment horizon Sensient Technologies is expected to generate 1.46 times more return on investment than DANAHER. However, Sensient Technologies is 1.46 times more volatile than DANAHER PORATION. It trades about 0.04 of its potential returns per unit of risk. DANAHER PORATION is currently generating about 0.0 per unit of risk. If you would invest 5,947 in Sensient Technologies on December 13, 2024 and sell it today you would earn a total of 1,343 from holding Sensient Technologies or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.86% |
| Values | Daily Returns |
Sensient Technologies vs. DANAHER PORATION
Performance |
| Timeline |
| Sensient Technologies |
| DANAHER PORATION |
Sensient Technologies and DANAHER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensient Technologies and DANAHER
The main advantage of trading using opposite Sensient Technologies and DANAHER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies position performs unexpectedly, DANAHER 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 DANAHER will offset losses from the drop in DANAHER's long position.| Sensient Technologies vs. Innospec | ||
| Sensient Technologies vs. Minerals Technologies | ||
| Sensient Technologies vs. Oil Dri | ||
| Sensient Technologies vs. H B Fuller |
| DANAHER vs. Ecolab Inc | ||
| DANAHER vs. Sensient Technologies | ||
| DANAHER vs. Braskem SA Class | ||
| DANAHER vs. Gentex |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |