Correlation Between TechnipFMC PLC and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC 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 TechnipFMC PLC and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Sartorius Stedim Biotech, you can compare the effects of market volatilities on TechnipFMC PLC 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 TechnipFMC PLC with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Sartorius Stedim.
Diversification Opportunities for TechnipFMC PLC and Sartorius Stedim
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TechnipFMC and Sartorius is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC 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 TechnipFMC PLC 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 TechnipFMC PLC 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 TechnipFMC PLC i.e., TechnipFMC PLC and Sartorius Stedim go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Sartorius Stedim
Assuming the 90 days trading horizon TechnipFMC PLC is expected to generate 1.1 times less return on investment than Sartorius Stedim. But when comparing it to its historical volatility, TechnipFMC PLC is 1.2 times less risky than Sartorius Stedim. It trades about 0.14 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 17,418 in Sartorius Stedim Biotech on September 3, 2025 and sell it today you would earn a total of 3,322 from holding Sartorius Stedim Biotech or generate 19.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TechnipFMC PLC vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| TechnipFMC PLC |
| Sartorius Stedim Biotech |
TechnipFMC PLC and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and Sartorius Stedim
The main advantage of trading using opposite TechnipFMC PLC and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC 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.| TechnipFMC PLC vs. Enbridge | TechnipFMC PLC vs. Endo International PLC | TechnipFMC PLC vs. Sosandar Plc | TechnipFMC PLC vs. Ebro Foods |
| Sartorius Stedim vs. Fair Oaks Income | Sartorius Stedim vs. Arrow Electronics | Sartorius Stedim vs. Air Products Chemicals | Sartorius Stedim vs. Pentair PLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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