Correlation Between Sartorius Stedim and Impulse Fitness

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

Diversification Opportunities for Sartorius Stedim and Impulse Fitness

0.01

Correlation Coefficient

Sartorius Stedim  Impulse Fitness

Significant diversification

The 3 months correlation between Sartorius and Impulse is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Impulse Fitness Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Fitness Solutions 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 Impulse Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Fitness Solutions has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Impulse Fitness go up and down completely randomly.

Pair Corralation between Sartorius Stedim and Impulse Fitness

Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to generate 1.98 times more return on investment than Impulse Fitness. However, Sartorius Stedim is 1.98 times more volatile than Impulse Fitness Solutions. It trades about 0.03 of its potential returns per unit of risk. Impulse Fitness Solutions is currently generating about -0.17 per unit of risk. 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	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sartorius Stedim Biotech  vs.  Impulse Fitness Solutions

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.

Impulse Fitness Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impulse Fitness Solutions 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 Impulse Fitness

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

The idea behind Sartorius Stedim Biotech and Impulse Fitness Solutions 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.