Correlation Between Media and Sartorius Aktiengesellscha

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

By analyzing existing cross correlation between Media and Games and Sartorius Aktiengesellschaft, you can compare the effects of market volatilities on Media 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 Media with a short position of Sartorius Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Sartorius Aktiengesellscha.

Diversification Opportunities for Media and Sartorius Aktiengesellscha

-0.05

Correlation Coefficient

Media  Sartorius Aktiengesellscha

Good diversification

The 3 months correlation between Media and Sartorius is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Sartorius Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Aktiengesellscha and Media 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 Media and Games 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 Media i.e., Media and Sartorius Aktiengesellscha go up and down completely randomly.

Pair Corralation between Media and Sartorius Aktiengesellscha

Assuming the 90 days trading horizon Media and Games is expected to under-perform the Sartorius Aktiengesellscha. In addition to that, Media is 1.12 times more volatile than Sartorius Aktiengesellschaft. It trades about -0.03 of its total potential returns per unit of risk. Sartorius Aktiengesellschaft is currently generating about 0.05 per unit of volatility. If you would invest  17,740  in Sartorius Aktiengesellschaft on December 4, 2024 and sell it today you would earn a total of  1,160  from holding Sartorius Aktiengesellschaft or generate 6.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Media and Games  vs.  Sartorius Aktiengesellschaft

Media and Games

Risk-Adjusted Performance

Very Weak

Over the last 90 days Media and Games has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Media is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Sartorius Aktiengesellscha

Risk-Adjusted Performance

Insignificant

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

Pair Trading with Media and Sartorius Aktiengesellscha

The main advantage of trading using opposite Media and Sartorius Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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.

The idea behind Media and Games and Sartorius Aktiengesellschaft 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.