Correlation Between Teva Pharma and Sentry Petroleum

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Teva Pharma and Sentry Petroleum 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 Teva Pharma and Sentry Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teva Pharma Industries and Sentry Petroleum, you can compare the effects of market volatilities on Teva Pharma and Sentry Petroleum 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 Teva Pharma with a short position of Sentry Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teva Pharma and Sentry Petroleum.

Diversification Opportunities for Teva Pharma and Sentry Petroleum

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Teva and Sentry is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Teva Pharma Industries and Sentry Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentry Petroleum and Teva Pharma 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 Teva Pharma Industries are associated (or correlated) with Sentry Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentry Petroleum has no effect on the direction of Teva Pharma i.e., Teva Pharma and Sentry Petroleum go up and down completely randomly.

Pair Corralation between Teva Pharma and Sentry Petroleum

If you would invest  0.01  in Sentry Petroleum on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Sentry Petroleum or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Teva Pharma Industries  vs.  Sentry Petroleum

 Performance 
       Timeline  
Teva Pharma Industries 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Teva Pharma Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Sentry Petroleum 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sentry Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Sentry Petroleum is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Teva Pharma and Sentry Petroleum Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Teva Pharma and Sentry Petroleum

The main advantage of trading using opposite Teva Pharma and Sentry Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teva Pharma position performs unexpectedly, Sentry Petroleum 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 Sentry Petroleum will offset losses from the drop in Sentry Petroleum's long position.
The idea behind Teva Pharma Industries and Sentry Petroleum 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
CEOs Directory
Screen CEOs from public companies around the world
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities