Correlation Between SYSTEMAIR and QIAGEN NV

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

By analyzing existing cross correlation between SYSTEMAIR AB and QIAGEN NV, you can compare the effects of market volatilities on SYSTEMAIR and QIAGEN NV 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 SYSTEMAIR with a short position of QIAGEN NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYSTEMAIR and QIAGEN NV.

Diversification Opportunities for SYSTEMAIR and QIAGEN NV

0.04

Correlation Coefficient

SYSTEMAIR  QIAGEN NV

Significant diversification

The 3 months correlation between SYSTEMAIR and QIAGEN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding SYSTEMAIR AB and QIAGEN NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QIAGEN NV and SYSTEMAIR 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 SYSTEMAIR AB are associated (or correlated) with QIAGEN NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QIAGEN NV has no effect on the direction of SYSTEMAIR i.e., SYSTEMAIR and QIAGEN NV go up and down completely randomly.

Pair Corralation between SYSTEMAIR and QIAGEN NV

Assuming the 90 days trading horizon SYSTEMAIR AB is expected to generate 1.48 times more return on investment than QIAGEN NV. However, SYSTEMAIR is 1.48 times more volatile than QIAGEN NV. It trades about -0.06 of its potential returns per unit of risk. QIAGEN NV is currently generating about -0.19 per unit of risk. If you would invest  775.00  in SYSTEMAIR AB on December 30, 2024 and sell it today you would lose (68.00) from holding SYSTEMAIR AB or give up 8.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

SYSTEMAIR AB  vs.  QIAGEN NV

SYSTEMAIR AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days SYSTEMAIR AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

QIAGEN NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days QIAGEN NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with SYSTEMAIR and QIAGEN NV

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

The idea behind SYSTEMAIR AB and QIAGEN NV 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.