Correlation Between EssilorLuxottica and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both EssilorLuxottica 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 EssilorLuxottica and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EssilorLuxottica Socit anonyme and Sartorius Stedim Biotech, you can compare the effects of market volatilities on EssilorLuxottica 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 EssilorLuxottica with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of EssilorLuxottica and Sartorius Stedim.
Diversification Opportunities for EssilorLuxottica and Sartorius Stedim
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EssilorLuxottica and Sartorius is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding EssilorLuxottica Socit anonyme 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 EssilorLuxottica 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 EssilorLuxottica Socit anonyme 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 EssilorLuxottica i.e., EssilorLuxottica and Sartorius Stedim go up and down completely randomly.
Pair Corralation between EssilorLuxottica and Sartorius Stedim
Assuming the 90 days horizon EssilorLuxottica Socit anonyme is expected to under-perform the Sartorius Stedim. But the pink sheet apears to be less risky and, when comparing its historical volatility, EssilorLuxottica Socit anonyme is 2.08 times less risky than Sartorius Stedim. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Sartorius Stedim Biotech is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 24,450 in Sartorius Stedim Biotech on August 30, 2025 and sell it today you would lose (646.00) from holding Sartorius Stedim Biotech or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EssilorLuxottica Socit anonyme vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| EssilorLuxottica Socit |
| Sartorius Stedim Biotech |
EssilorLuxottica and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EssilorLuxottica and Sartorius Stedim
The main advantage of trading using opposite EssilorLuxottica and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EssilorLuxottica 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.| EssilorLuxottica vs. Southwest Airlines | EssilorLuxottica vs. United Airlines Holdings | EssilorLuxottica vs. NETCLASS TECHNOLOGY INC | EssilorLuxottica vs. Fair Isaac |
| Sartorius Stedim vs. Abingdon Health Plc | Sartorius Stedim vs. Chatham Lodging Trust | Sartorius Stedim vs. National Healthcare Logistics | Sartorius Stedim vs. Tekla Healthcare Investors |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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