Correlation Between Sartorius Stedim and Uber Technologies

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

Diversification Opportunities for Sartorius Stedim and Uber Technologies

0.17

Correlation Coefficient

Sartorius Stedim  Uber Technologies

Average diversification

The 3 months correlation between Sartorius and Uber is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Uber Technologies go up and down completely randomly.

Pair Corralation between Sartorius Stedim and Uber Technologies

Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 1.35 times more return on investment than Uber Technologies. However, Sartorius Stedim is 1.35 times more volatile than Uber Technologies. It trades about 0.03 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.13 per unit of risk. If you would invest  18,460  in Sartorius Stedim Biotech on October 11, 2024 and sell it today you would earn a total of  475.00  from holding Sartorius Stedim Biotech or generate 2.57% return on investment over 90 days.

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

Sartorius Stedim Biotech  vs.  Uber Technologies

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 nearly stable basic indicators, Sartorius Stedim is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Uber Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Uber Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Sartorius Stedim and Uber Technologies

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

The idea behind Sartorius Stedim Biotech and Uber Technologies 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.