Correlation Between Sartorius Stedim and Robertet

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

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

Diversification Opportunities for Sartorius Stedim and Robertet

0.49

Correlation Coefficient

Sartorius Stedim  Robertet

Very weak diversification

The 3 months correlation between Sartorius and Robertet is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Robertet SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robertet SA and Sartorius Stedim 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 Sartorius Stedim Biotech are associated (or correlated) with Robertet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robertet SA has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Robertet go up and down completely randomly.

Pair Corralation between Sartorius Stedim and Robertet

Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 2.57 times more return on investment than Robertet. However, Sartorius Stedim is 2.57 times more volatile than Robertet SA. It trades about 0.03 of its potential returns per unit of risk. Robertet SA is currently generating about 0.01 per unit of risk. If you would invest  17,470  in Sartorius Stedim Biotech on September 3, 2024 and sell it today you would earn a total of  565.00  from holding Sartorius Stedim Biotech or generate 3.23% return on investment over 90 days.

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

Sartorius Stedim Biotech  vs.  Robertet SA

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 weak primary indicators, Sartorius Stedim may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Robertet SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robertet SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Robertet is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sartorius Stedim and Robertet

The main advantage of trading using opposite Sartorius Stedim and Robertet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Robertet 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 Robertet will offset losses from the drop in Robertet's long position.

The idea behind Sartorius Stedim Biotech and Robertet SA 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.