Correlation Between ICL Israel and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both ICL Israel 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 ICL Israel and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICL Israel Chemicals and Sartorius Stedim Biotech, you can compare the effects of market volatilities on ICL Israel 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 ICL Israel with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICL Israel and Sartorius Stedim.
Diversification Opportunities for ICL Israel and Sartorius Stedim
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICL and Sartorius is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals 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 ICL Israel 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 ICL Israel Chemicals 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 ICL Israel i.e., ICL Israel and Sartorius Stedim go up and down completely randomly.
Pair Corralation between ICL Israel and Sartorius Stedim
Considering the 90-day investment horizon ICL Israel is expected to generate 1.55 times less return on investment than Sartorius Stedim. But when comparing it to its historical volatility, ICL Israel Chemicals is 1.07 times less risky than Sartorius Stedim. It trades about 0.08 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 21,800 in Sartorius Stedim Biotech on April 19, 2025 and sell it today you would earn a total of 2,635 from holding Sartorius Stedim Biotech or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICL Israel Chemicals vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| ICL Israel Chemicals |
| Sartorius Stedim Biotech |
ICL Israel and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICL Israel and Sartorius Stedim
The main advantage of trading using opposite ICL Israel and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel 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.| ICL Israel vs. Intrepid Potash | ICL Israel vs. American Vanguard | ICL Israel vs. CF Industries Holdings | ICL Israel vs. The Mosaic |
| Sartorius Stedim vs. Coloplast AS | Sartorius Stedim vs. Carl Zeiss Meditec | Sartorius Stedim vs. HOYA Corporation | Sartorius Stedim vs. Lonza Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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