Correlation Between Dentsply Sirona and Anteris Technologies

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

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

Diversification Opportunities for Dentsply Sirona and Anteris Technologies

0.34

Correlation Coefficient

Dentsply Sirona  Anteris Technologies

Weak diversification

The 3 months correlation between Dentsply and Anteris is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dentsply Sirona and Anteris Technologies Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Dentsply Sirona 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 Dentsply Sirona are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Dentsply Sirona i.e., Dentsply Sirona and Anteris Technologies go up and down completely randomly.

Pair Corralation between Dentsply Sirona and Anteris Technologies

Given the investment horizon of 90 days Dentsply Sirona is expected to under-perform the Anteris Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Dentsply Sirona is 1.33 times less risky than Anteris Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The Anteris Technologies Global is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  600.00  in Anteris Technologies Global on October 23, 2024 and sell it today you would lose (1.00) from holding Anteris Technologies Global or give up 0.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.06%
Values	Daily Returns

Dentsply Sirona  vs.  Anteris Technologies Global

Dentsply Sirona

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dentsply Sirona has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Anteris Technologies is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Dentsply Sirona and Anteris Technologies

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

The idea behind Dentsply Sirona and Anteris Technologies Global 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.