Correlation Between Tradegate and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both Tradegate and Sartorius Stedim 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 Tradegate and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Tradegate and Sartorius Stedim 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 Tradegate with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and Sartorius Stedim.
Diversification Opportunities for Tradegate and Sartorius Stedim
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tradegate and Sartorius is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and Sartorius Stedim Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Stedim Biotech and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with Sartorius Stedim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Stedim Biotech has no effect on the direction of Tradegate i.e., Tradegate and Sartorius Stedim go up and down completely randomly.
Pair Corralation between Tradegate and Sartorius Stedim
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to under-perform the Sartorius Stedim. But the stock apears to be less risky and, when comparing its historical volatility, Tradegate AG Wertpapierhandelsbank is 2.31 times less risky than Sartorius Stedim. The stock trades about -0.05 of its potential returns per unit of risk. The Sartorius Stedim Biotech is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 18,456 in Sartorius Stedim Biotech on November 6, 2024 and sell it today you would earn a total of 4,044 from holding Sartorius Stedim Biotech or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| Tradegate AG Wertpap |
| Sartorius Stedim Biotech |
Tradegate and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and Sartorius Stedim
The main advantage of trading using opposite Tradegate and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, Sartorius Stedim 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 Sartorius Stedim will offset losses from the drop in Sartorius Stedim's long position.| Tradegate vs. Ribbon Communications | Tradegate vs. CanSino Biologics | Tradegate vs. ecotel communication ag | Tradegate vs. UNIVMUSIC GRPADR050 |
| Sartorius Stedim vs. BII Railway Transportation | Sartorius Stedim vs. JD SPORTS FASH | Sartorius Stedim vs. Yuexiu Transport Infrastructure | Sartorius Stedim vs. Gaztransport Technigaz SA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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