Correlation Between Trigano SA and Sartorius Stedim

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

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

Diversification Opportunities for Trigano SA and Sartorius Stedim

0.58

Correlation Coefficient

Trigano SA  Sartorius Stedim

Very weak diversification

The 3 months correlation between Trigano and Sartorius is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Sartorius Stedim Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Stedim Biotech and Trigano SA 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 Trigano SA are associated (or correlated) with Sartorius Stedim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Stedim Biotech has no effect on the direction of Trigano SA i.e., Trigano SA and Sartorius Stedim go up and down completely randomly.

Pair Corralation between Trigano SA and Sartorius Stedim

Assuming the 90 days trading horizon Trigano SA is expected to generate 2.01 times less return on investment than Sartorius Stedim. But when comparing it to its historical volatility, Trigano SA is 1.24 times less risky than Sartorius Stedim. It trades about 0.03 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  18,430  in Sartorius Stedim Biotech on December 24, 2024 and sell it today you would earn a total of  1,050  from holding Sartorius Stedim Biotech or generate 5.7% return on investment over 90 days.

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

Trigano SA  vs.  Sartorius Stedim Biotech

Trigano SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Trigano SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, Trigano SA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Sartorius Stedim Biotech

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Stedim Biotech are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Sartorius Stedim may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Trigano SA and Sartorius Stedim

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

The idea behind Trigano SA and Sartorius Stedim Biotech 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.