Correlation Between Sartorius Stedim and Litigation Capital
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Litigation Capital 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 Litigation Capital 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 Litigation Capital Management, you can compare the effects of market volatilities on Sartorius Stedim and Litigation Capital 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 Litigation Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Litigation Capital.
Diversification Opportunities for Sartorius Stedim and Litigation Capital
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sartorius and Litigation is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Litigation Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litigation Capital 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 Litigation Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litigation Capital has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Litigation Capital go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Litigation Capital
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 1.97 times more return on investment than Litigation Capital. However, Sartorius Stedim is 1.97 times more volatile than Litigation Capital Management. It trades about 0.02 of its potential returns per unit of risk. Litigation Capital Management is currently generating about -0.15 per unit of risk. If you would invest 17,972 in Sartorius Stedim Biotech on October 8, 2024 and sell it today you would earn a total of 58.00 from holding Sartorius Stedim Biotech or generate 0.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sartorius Stedim Biotech vs. Litigation Capital Management
Performance |
Timeline |
Sartorius Stedim Biotech |
Litigation Capital |
Sartorius Stedim and Litigation Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sartorius Stedim and Litigation Capital
The main advantage of trading using opposite Sartorius Stedim and Litigation Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim position performs unexpectedly, Litigation Capital 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 Litigation Capital will offset losses from the drop in Litigation Capital's long position.Sartorius Stedim vs. Uniper SE | Sartorius Stedim vs. Codex Acquisitions PLC | Sartorius Stedim vs. Ikigai Ventures | Sartorius Stedim vs. Heavitree Brewery |
Litigation Capital vs. Toyota Motor Corp | Litigation Capital vs. OTP Bank Nyrt | Litigation Capital vs. Agilent Technologies | Litigation Capital vs. Newmont Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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