Correlation Between LAir Liquide and Sutro Biopharma
Can any of the company-specific risk be diversified away by investing in both LAir Liquide and Sutro Biopharma 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 LAir Liquide and Sutro Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAir Liquide SA and Sutro Biopharma, you can compare the effects of market volatilities on LAir Liquide and Sutro Biopharma 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 LAir Liquide with a short position of Sutro Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAir Liquide and Sutro Biopharma.
Diversification Opportunities for LAir Liquide and Sutro Biopharma
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LAir and Sutro is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding LAir Liquide SA and Sutro Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sutro Biopharma and LAir Liquide 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 LAir Liquide SA are associated (or correlated) with Sutro Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sutro Biopharma has no effect on the direction of LAir Liquide i.e., LAir Liquide and Sutro Biopharma go up and down completely randomly.
Pair Corralation between LAir Liquide and Sutro Biopharma
Assuming the 90 days horizon LAir Liquide SA is expected to under-perform the Sutro Biopharma. But the pink sheet apears to be less risky and, when comparing its historical volatility, LAir Liquide SA is 172.53 times less risky than Sutro Biopharma. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Sutro Biopharma is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Sutro Biopharma on September 4, 2025 and sell it today you would lose (37.00) from holding Sutro Biopharma or give up 33.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAir Liquide SA vs. Sutro Biopharma
Performance |
| Timeline |
| LAir Liquide SA |
| Sutro Biopharma |
LAir Liquide and Sutro Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAir Liquide and Sutro Biopharma
The main advantage of trading using opposite LAir Liquide and Sutro Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAir Liquide position performs unexpectedly, Sutro Biopharma 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 Sutro Biopharma will offset losses from the drop in Sutro Biopharma's long position.| LAir Liquide vs. Glorywin Entertainment Group | LAir Liquide vs. Network Media Group | LAir Liquide vs. Space Communication | LAir Liquide vs. Connected Media Tech |
| Sutro Biopharma vs. Renovare Environmental | Sutro Biopharma vs. Mineral Mountain Mining | Sutro Biopharma vs. Japan Steel Works | Sutro Biopharma vs. Environmental Packaging Technologies |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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