Correlation Between Spineway and Sartorius Stedim

Can any of the company-specific risk be diversified away by investing in both Spineway 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 Spineway and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Spineway and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Spineway 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 Spineway with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spineway and Sartorius Stedim.

Diversification Opportunities for Spineway and Sartorius Stedim

0.09

Correlation Coefficient

Spineway  Sartorius Stedim

Significant diversification

The 3 months correlation between Spineway and Sartorius is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Spineway 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 Spineway 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 Spineway 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 Spineway i.e., Spineway and Sartorius Stedim go up and down completely randomly.

Pair Corralation between Spineway and Sartorius Stedim

Assuming the 90 days trading horizon Spineway is expected to under-perform the Sartorius Stedim. In addition to that, Spineway is 3.95 times more volatile than Sartorius Stedim Biotech. It trades about -0.1 of its total potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.03 per unit of volatility. If you would invest  18,700  in Sartorius Stedim Biotech on September 12, 2024 and sell it today you would earn a total of  485.00  from holding Sartorius Stedim Biotech or generate 2.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Spineway  vs.  Sartorius Stedim Biotech

Spineway

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Spineway has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Sartorius Stedim Biotech

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Stedim Biotech are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, Sartorius Stedim is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Spineway and Sartorius Stedim

The main advantage of trading using opposite Spineway and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spineway 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.

The idea behind Spineway and Sartorius Stedim Biotech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.