Correlation Between Granite 3x and Sartorius Stedim

Can any of the company-specific risk be diversified away by investing in both Granite 3x 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 Granite 3x and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Granite 3x LVMH and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Granite 3x 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 Granite 3x with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite 3x and Sartorius Stedim.

Diversification Opportunities for Granite 3x and Sartorius Stedim

0.27

Correlation Coefficient

Granite 3x  Sartorius Stedim

Modest diversification

The 3 months correlation between Granite and Sartorius is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Granite 3x LVMH 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 Granite 3x 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 Granite 3x LVMH 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 Granite 3x i.e., Granite 3x and Sartorius Stedim go up and down completely randomly.

Pair Corralation between Granite 3x and Sartorius Stedim

Assuming the 90 days trading horizon Granite 3x LVMH is expected to under-perform the Sartorius Stedim. In addition to that, Granite 3x is 2.33 times more volatile than Sartorius Stedim Biotech. It trades about -0.02 of its total potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.03 per unit of volatility. If you would invest  18,700  in Sartorius Stedim Biotech on September 12, 2024 and sell it today you would earn a total of  485.00  from holding Sartorius Stedim Biotech or generate 2.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	76.56%
Values	Daily Returns

Granite 3x LVMH  vs.  Sartorius Stedim Biotech

Granite 3x LVMH

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Granite 3x LVMH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

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 strong primary indicators, Sartorius Stedim is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Granite 3x and Sartorius Stedim

The main advantage of trading using opposite Granite 3x and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite 3x 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 Granite 3x LVMH 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.