Correlation Between Sartorius Stedim and Trigano SA

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

Diversification Opportunities for Sartorius Stedim and Trigano SA

0.21

Correlation Coefficient

Sartorius Stedim  Trigano SA

Modest diversification

The 3 months correlation between Sartorius and Trigano is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano 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 Trigano SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trigano SA has no effect on the direction of Sartorius Stedim i.e., Sartorius Stedim and Trigano SA go up and down completely randomly.

Pair Corralation between Sartorius Stedim and Trigano SA

Assuming the 90 days trading horizon Sartorius Stedim is expected to generate 1.14 times less return on investment than Trigano SA. In addition to that, Sartorius Stedim is 2.19 times more volatile than Trigano SA. It trades about 0.04 of its total potential returns per unit of risk. Trigano SA is currently generating about 0.11 per unit of volatility. If you would invest  11,530  in Trigano SA on October 9, 2024 and sell it today you would earn a total of  1,090  from holding Trigano SA or generate 9.45% 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.  Trigano SA

Sartorius Stedim Biotech

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Stedim Biotech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Sartorius Stedim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Trigano SA

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trigano SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Trigano SA may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Sartorius Stedim and Trigano SA

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

The idea behind Sartorius Stedim Biotech and Trigano 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.