Correlation Between Thermo Fisher and Sartorius Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Thermo Fisher 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 Thermo Fisher and Sartorius Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermo Fisher Scientific and Sartorius Aktiengesellschaft, you can compare the effects of market volatilities on Thermo Fisher 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 Thermo Fisher with a short position of Sartorius Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermo Fisher and Sartorius Aktiengesellscha.
Diversification Opportunities for Thermo Fisher and Sartorius Aktiengesellscha
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thermo and Sartorius is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thermo Fisher Scientific and Sartorius Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Aktiengesellscha and Thermo Fisher 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 Thermo Fisher Scientific 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 Thermo Fisher i.e., Thermo Fisher and Sartorius Aktiengesellscha go up and down completely randomly.
Pair Corralation between Thermo Fisher and Sartorius Aktiengesellscha
Assuming the 90 days horizon Thermo Fisher Scientific is expected to under-perform the Sartorius Aktiengesellscha. But the stock apears to be less risky and, when comparing its historical volatility, Thermo Fisher Scientific is 1.88 times less risky than Sartorius Aktiengesellscha. The stock trades about -0.08 of its potential returns per unit of risk. The Sartorius Aktiengesellschaft is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 19,120 in Sartorius Aktiengesellschaft on September 13, 2024 and sell it today you would lose (460.00) from holding Sartorius Aktiengesellschaft or give up 2.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Thermo Fisher Scientific vs. Sartorius Aktiengesellschaft
Performance |
Timeline |
Thermo Fisher Scientific |
Sartorius Aktiengesellscha |
Thermo Fisher and Sartorius Aktiengesellscha Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thermo Fisher and Sartorius Aktiengesellscha
The main advantage of trading using opposite Thermo Fisher and Sartorius Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermo Fisher 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.Thermo Fisher vs. TYSON FOODS A | Thermo Fisher vs. COFCO Joycome Foods | Thermo Fisher vs. Infrastrutture Wireless Italiane | Thermo Fisher vs. Ebro Foods SA |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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