Correlation Between DENTSPLY SIRONA and DIeteren Group

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

By analyzing existing cross correlation between DENTSPLY SIRONA and DIeteren Group SA, you can compare the effects of market volatilities on DENTSPLY SIRONA and DIeteren Group 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 DENTSPLY SIRONA with a short position of DIeteren Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DENTSPLY SIRONA and DIeteren Group.

Diversification Opportunities for DENTSPLY SIRONA and DIeteren Group

0.17

Correlation Coefficient

DENTSPLY SIRONA  DIeteren Group

Average diversification

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

Pair Corralation between DENTSPLY SIRONA and DIeteren Group

Assuming the 90 days trading horizon DENTSPLY SIRONA is expected to under-perform the DIeteren Group. In addition to that, DENTSPLY SIRONA is 1.43 times more volatile than DIeteren Group SA. It trades about -0.18 of its total potential returns per unit of risk. DIeteren Group SA is currently generating about 0.01 per unit of volatility. If you would invest  16,300  in DIeteren Group SA on December 25, 2024 and sell it today you would earn a total of  80.00  from holding DIeteren Group SA or generate 0.49% return on investment over 90 days.

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

DENTSPLY SIRONA  vs.  DIeteren Group SA

DENTSPLY SIRONA

Risk-Adjusted Performance

Very Weak

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

DIeteren Group SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DIeteren Group SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, DIeteren Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with DENTSPLY SIRONA and DIeteren Group

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

The idea behind DENTSPLY SIRONA and DIeteren Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..