Correlation Between Sartorius Stedim and Haffner Energy

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

Diversification Opportunities for Sartorius Stedim and Haffner Energy

0.31

Correlation Coefficient

Sartorius Stedim  Haffner Energy

Weak diversification

The 3 months correlation between Sartorius and Haffner is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Haffner Energy SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haffner Energy SA 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 Haffner Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haffner Energy SA has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Haffner Energy go up and down completely randomly.

Pair Corralation between Sartorius Stedim and Haffner Energy

Assuming the 90 days trading horizon Sartorius Stedim is expected to generate 2.4 times less return on investment than Haffner Energy. But when comparing it to its historical volatility, Sartorius Stedim Biotech is 2.03 times less risky than Haffner Energy. It trades about 0.07 of its potential returns per unit of risk. Haffner Energy SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Haffner Energy SA on September 27, 2024 and sell it today you would earn a total of  30.00  from holding Haffner Energy SA or generate 56.6% return on investment over 90 days.

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

Sartorius Stedim Biotech  vs.  Haffner Energy SA

Sartorius Stedim Biotech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sartorius Stedim Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Sartorius Stedim is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Haffner Energy SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haffner Energy SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Sartorius Stedim and Haffner Energy

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

The idea behind Sartorius Stedim Biotech and Haffner Energy SA 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.