Correlation Between Alcon AG and Sartorius Stedim

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

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

Diversification Opportunities for Alcon AG and Sartorius Stedim

-0.14

Correlation Coefficient

Alcon AG  Sartorius Stedim

Good diversification

The 3 months correlation between Alcon and Sartorius is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alcon AG 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 Alcon AG 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 Alcon AG 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 Alcon AG i.e., Alcon AG and Sartorius Stedim go up and down completely randomly.

Pair Corralation between Alcon AG and Sartorius Stedim

Considering the 90-day investment horizon Alcon AG is expected to under-perform the Sartorius Stedim. But the stock apears to be less risky and, when comparing its historical volatility, Alcon AG is 1.96 times less risky than Sartorius Stedim. The stock trades about -0.01 of its potential returns per unit of risk. The Sartorius Stedim Biotech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  20,437  in Sartorius Stedim Biotech on September 5, 2025 and sell it today you would earn a total of  4,418  from holding Sartorius Stedim Biotech or generate 21.62% return on investment over 90 days.

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

Alcon AG  vs.  Sartorius Stedim Biotech

Alcon AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Alcon AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Alcon AG is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sartorius Stedim Biotech

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Stedim Biotech are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical indicators, Sartorius Stedim reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alcon AG and Sartorius Stedim

The main advantage of trading using opposite Alcon AG and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcon AG 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 Alcon AG 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.