Correlation Between Tianjin Capital and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital 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 Tianjin Capital and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Capital Environmental and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Tianjin Capital 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 Tianjin Capital with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Sartorius Stedim.
Diversification Opportunities for Tianjin Capital and Sartorius Stedim
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tianjin and Sartorius is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental 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 Tianjin Capital 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and Sartorius Stedim go up and down completely randomly.
Pair Corralation between Tianjin Capital and Sartorius Stedim
Assuming the 90 days horizon Tianjin Capital Environmental is expected to under-perform the Sartorius Stedim. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Capital Environmental is 1.41 times less risky than Sartorius Stedim. The stock trades about -0.1 of its potential returns per unit of risk. The Sartorius Stedim Biotech is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 18,215 in Sartorius Stedim Biotech on October 25, 2024 and sell it today you would earn a total of 2,165 from holding Sartorius Stedim Biotech or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| Tianjin Capital Envi |
| Sartorius Stedim Biotech |
Tianjin Capital and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Sartorius Stedim
The main advantage of trading using opposite Tianjin Capital and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital 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.| Tianjin Capital vs. MAGNUM MINING EXP | Tianjin Capital vs. Peijia Medical Limited | Tianjin Capital vs. ARDAGH METAL PACDL 0001 | Tianjin Capital vs. Forsys Metals Corp |
| Sartorius Stedim vs. Tower Semiconductor | Sartorius Stedim vs. Entravision Communications | Sartorius Stedim vs. Verizon Communications | Sartorius Stedim vs. TOREX SEMICONDUCTOR LTD |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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