Correlation Between Sartorius Aktiengesellscha and BioLife Sciences

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

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

Diversification Opportunities for Sartorius Aktiengesellscha and BioLife Sciences

0.0

Correlation Coefficient

Sartorius Aktiengesellscha  BioLife Sciences

Pay attention - limited upside

The 3 months correlation between Sartorius and BioLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Aktiengesellschaft and BioLife Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Sciences and Sartorius Aktiengesellscha 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 Aktiengesellschaft are associated (or correlated) with BioLife Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Sciences has no effect on the direction of Sartorius Aktiengesellscha i.e., Sartorius Aktiengesellscha and BioLife Sciences go up and down completely randomly.

Pair Corralation between Sartorius Aktiengesellscha and BioLife Sciences

Assuming the 90 days horizon Sartorius Aktiengesellschaft is expected to under-perform the BioLife Sciences. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sartorius Aktiengesellschaft is 12.1 times less risky than BioLife Sciences. The pink sheet trades about -0.01 of its potential returns per unit of risk. The BioLife Sciences is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  0.02  in BioLife Sciences on October 5, 2024 and sell it today you would lose (0.01) from holding BioLife Sciences or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	58.25%
Values	Daily Returns

Sartorius Aktiengesellschaft  vs.  BioLife Sciences

Sartorius Aktiengesellscha

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Sartorius Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BioLife Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioLife Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, BioLife Sciences is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Sartorius Aktiengesellscha and BioLife Sciences

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

The idea behind Sartorius Aktiengesellschaft and BioLife Sciences 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..