Correlation Between Sartorius Stedim and Workspace Group

Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim and Workspace Group 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 Workspace Group 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 Workspace Group PLC, you can compare the effects of market volatilities on Sartorius Stedim and Workspace Group 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 Workspace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Workspace Group.

Diversification Opportunities for Sartorius Stedim and Workspace Group

-0.08

Correlation Coefficient

Sartorius Stedim  Workspace Group

Good diversification

The 3 months correlation between Sartorius and Workspace is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Workspace Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workspace Group PLC 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 Workspace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workspace Group PLC has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Workspace Group go up and down completely randomly.

Pair Corralation between Sartorius Stedim and Workspace Group

Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 1.43 times more return on investment than Workspace Group. However, Sartorius Stedim is 1.43 times more volatile than Workspace Group PLC. It trades about 0.04 of its potential returns per unit of risk. Workspace Group PLC is currently generating about -0.11 per unit of risk. If you would invest  18,784  in Sartorius Stedim Biotech on December 25, 2024 and sell it today you would earn a total of  839.00  from holding Sartorius Stedim Biotech or generate 4.47% 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.  Workspace Group PLC

Sartorius Stedim Biotech

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Stedim Biotech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Sartorius Stedim may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Workspace Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Workspace Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Sartorius Stedim and Workspace Group

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

The idea behind Sartorius Stedim Biotech and Workspace Group PLC 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 CEOs Directory module to screen CEOs from public companies around the world.