Correlation Between Sensirion Holding and Santhera Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Sensirion Holding and Santhera Pharmaceuticals 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 Sensirion Holding and Santhera Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sensirion Holding AG and Santhera Pharmaceuticals Holding, you can compare the effects of market volatilities on Sensirion Holding and Santhera Pharmaceuticals 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 Sensirion Holding with a short position of Santhera Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensirion Holding and Santhera Pharmaceuticals.

Diversification Opportunities for Sensirion Holding and Santhera Pharmaceuticals

0.0

Correlation Coefficient

Sensirion Holding  Santhera Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Sensirion and Santhera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sensirion Holding AG and Santhera Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santhera Pharmaceuticals and Sensirion Holding 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 Sensirion Holding AG are associated (or correlated) with Santhera Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santhera Pharmaceuticals has no effect on the direction of Sensirion Holding i.e., Sensirion Holding and Santhera Pharmaceuticals go up and down completely randomly.

Pair Corralation between Sensirion Holding and Santhera Pharmaceuticals

If you would invest  1,402  in Santhera Pharmaceuticals Holding on April 21, 2025 and sell it today you would lose (2.00) from holding Santhera Pharmaceuticals Holding or give up 0.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sensirion Holding AG  vs.  Santhera Pharmaceuticals Holdi

Sensirion Holding

Risk-Adjusted Performance

Solid

Over the last 90 days Sensirion Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Sensirion Holding is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Santhera Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Santhera Pharmaceuticals Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Santhera Pharmaceuticals is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Sensirion Holding and Santhera Pharmaceuticals

The main advantage of trading using opposite Sensirion Holding and Santhera Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensirion Holding position performs unexpectedly, Santhera Pharmaceuticals 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 Santhera Pharmaceuticals will offset losses from the drop in Santhera Pharmaceuticals' long position.

The idea behind Sensirion Holding AG and Santhera Pharmaceuticals Holding 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.