Correlation Between ESSILORLUXOTTICA and Sartorius Aktiengesellscha
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By analyzing existing cross correlation between ESSILORLUXOTTICA 12ON and Sartorius Aktiengesellschaft, you can compare the effects of market volatilities on ESSILORLUXOTTICA and Sartorius Aktiengesellscha 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 ESSILORLUXOTTICA with a short position of Sartorius Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESSILORLUXOTTICA and Sartorius Aktiengesellscha.
Diversification Opportunities for ESSILORLUXOTTICA and Sartorius Aktiengesellscha
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ESSILORLUXOTTICA and Sartorius is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ESSILORLUXOTTICA 12ON and Sartorius Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Aktiengesellscha and ESSILORLUXOTTICA 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 ESSILORLUXOTTICA 12ON are associated (or correlated) with Sartorius Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Aktiengesellscha has no effect on the direction of ESSILORLUXOTTICA i.e., ESSILORLUXOTTICA and Sartorius Aktiengesellscha go up and down completely randomly.
Pair Corralation between ESSILORLUXOTTICA and Sartorius Aktiengesellscha
Assuming the 90 days trading horizon ESSILORLUXOTTICA 12ON is expected to generate 0.44 times more return on investment than Sartorius Aktiengesellscha. However, ESSILORLUXOTTICA 12ON is 2.27 times less risky than Sartorius Aktiengesellscha. It trades about 0.16 of its potential returns per unit of risk. Sartorius Aktiengesellschaft is currently generating about -0.02 per unit of risk. If you would invest 10,000 in ESSILORLUXOTTICA 12ON on September 24, 2024 and sell it today you would earn a total of 1,400 from holding ESSILORLUXOTTICA 12ON or generate 14.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ESSILORLUXOTTICA 12ON vs. Sartorius Aktiengesellschaft
Performance |
Timeline |
ESSILORLUXOTTICA 12ON |
Sartorius Aktiengesellscha |
ESSILORLUXOTTICA and Sartorius Aktiengesellscha Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ESSILORLUXOTTICA and Sartorius Aktiengesellscha
The main advantage of trading using opposite ESSILORLUXOTTICA and Sartorius Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESSILORLUXOTTICA position performs unexpectedly, Sartorius Aktiengesellscha 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 Sartorius Aktiengesellscha will offset losses from the drop in Sartorius Aktiengesellscha's long position.ESSILORLUXOTTICA vs. Intuitive Surgical | ESSILORLUXOTTICA vs. EssilorLuxottica Socit anonyme | ESSILORLUXOTTICA vs. Resmed Inc DRC | ESSILORLUXOTTICA vs. ResMed Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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