Correlation Between Qiagen NV and Danaher

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

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

Diversification Opportunities for Qiagen NV and Danaher

-0.22

Correlation Coefficient

Qiagen NV  Danaher

Very good diversification

The 3 months correlation between Qiagen and Danaher is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Qiagen NV and Danaher in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danaher and Qiagen NV 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 Qiagen NV are associated (or correlated) with Danaher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danaher has no effect on the direction of Qiagen NV i.e., Qiagen NV and Danaher go up and down completely randomly.

Pair Corralation between Qiagen NV and Danaher

Given the investment horizon of 90 days Qiagen NV is expected to under-perform the Danaher. But the stock apears to be less risky and, when comparing its historical volatility, Qiagen NV is 1.07 times less risky than Danaher. The stock trades about -0.11 of its potential returns per unit of risk. The Danaher is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  23,513  in Danaher on October 12, 2024 and sell it today you would earn a total of  296.00  from holding Danaher or generate 1.26% return on investment over 90 days.

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

Qiagen NV  vs.  Danaher

Qiagen NV

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Qiagen NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Qiagen NV is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Danaher

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Danaher 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 technical indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Qiagen NV and Danaher

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

The idea behind Qiagen NV and Danaher 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.