Correlation Between Inspiration Healthcare and Sartorius Stedim

Can any of the company-specific risk be diversified away by investing in both Inspiration Healthcare 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 Inspiration Healthcare and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inspiration Healthcare Group and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Inspiration Healthcare 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 Inspiration Healthcare with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspiration Healthcare and Sartorius Stedim.

Diversification Opportunities for Inspiration Healthcare and Sartorius Stedim

0.08

Correlation Coefficient

Inspiration Healthcare  Sartorius Stedim

Significant diversification

The 3 months correlation between Inspiration and Sartorius is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Inspiration Healthcare Group 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 Inspiration Healthcare 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 Inspiration Healthcare Group 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 Inspiration Healthcare i.e., Inspiration Healthcare and Sartorius Stedim go up and down completely randomly.

Pair Corralation between Inspiration Healthcare and Sartorius Stedim

Assuming the 90 days trading horizon Inspiration Healthcare Group is expected to generate 1.87 times more return on investment than Sartorius Stedim. However, Inspiration Healthcare is 1.87 times more volatile than Sartorius Stedim Biotech. It trades about 0.13 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about -0.01 per unit of risk. If you would invest  1,650  in Inspiration Healthcare Group on April 20, 2025 and sell it today you would earn a total of  450.00  from holding Inspiration Healthcare Group or generate 27.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Inspiration Healthcare Group  vs.  Sartorius Stedim Biotech

Inspiration Healthcare

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inspiration Healthcare Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Inspiration Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

Sartorius Stedim Biotech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sartorius Stedim Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sartorius Stedim is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Inspiration Healthcare and Sartorius Stedim

The main advantage of trading using opposite Inspiration Healthcare and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspiration Healthcare 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.

The idea behind Inspiration Healthcare Group and Sartorius Stedim Biotech 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 Transaction History module to view history of all your transactions and understand their impact on performance.