Correlation Between Stevanato Group and Ryan Specialty

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

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

Diversification Opportunities for Stevanato Group and Ryan Specialty

-0.46

Correlation Coefficient

Stevanato Group  Ryan Specialty

Very good diversification

The 3 months correlation between Stevanato and Ryan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA and Ryan Specialty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryan Specialty Group and Stevanato Group 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 Stevanato Group SpA are associated (or correlated) with Ryan Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryan Specialty Group has no effect on the direction of Stevanato Group i.e., Stevanato Group and Ryan Specialty go up and down completely randomly.

Pair Corralation between Stevanato Group and Ryan Specialty

Given the investment horizon of 90 days Stevanato Group SpA is expected to under-perform the Ryan Specialty. In addition to that, Stevanato Group is 2.11 times more volatile than Ryan Specialty Group. It trades about -0.01 of its total potential returns per unit of risk. Ryan Specialty Group is currently generating about 0.13 per unit of volatility. If you would invest  6,361  in Ryan Specialty Group on December 28, 2024 and sell it today you would earn a total of  793.00  from holding Ryan Specialty Group or generate 12.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Stevanato Group SpA  vs.  Ryan Specialty Group

Stevanato Group SpA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stevanato Group SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Stevanato Group is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Ryan Specialty Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ryan Specialty Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Ryan Specialty displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stevanato Group and Ryan Specialty

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

The idea behind Stevanato Group SpA and Ryan Specialty Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.