Correlation Between Bet At and Sartorius Stedim

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

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

Diversification Opportunities for Bet At and Sartorius Stedim

0.34

Correlation Coefficient

Bet At  Sartorius Stedim

Weak diversification

The 3 months correlation between Bet and Sartorius is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG 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 Bet At 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 bet at home AG 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 Bet At i.e., Bet At and Sartorius Stedim go up and down completely randomly.

Pair Corralation between Bet At and Sartorius Stedim

Assuming the 90 days trading horizon Bet At is expected to generate 1.15 times less return on investment than Sartorius Stedim. In addition to that, Bet At is 1.07 times more volatile than Sartorius Stedim Biotech. It trades about 0.16 of its total potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.19 per unit of volatility. If you would invest  17,791  in Sartorius Stedim Biotech on October 26, 2024 and sell it today you would earn a total of  2,799  from holding Sartorius Stedim Biotech or generate 15.73% return on investment over 90 days.

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

bet at home AG  vs.  Sartorius Stedim Biotech

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bet At is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Sartorius Stedim Biotech

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Stedim Biotech are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sartorius Stedim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Bet At and Sartorius Stedim

The main advantage of trading using opposite Bet At and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At 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 bet at home AG 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.