Correlation Between Sartorius Aktiengesellscha and Coloplast

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

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

Diversification Opportunities for Sartorius Aktiengesellscha and Coloplast

-0.29

Correlation Coefficient

Sartorius Aktiengesellscha  Coloplast

Very good diversification

The 3 months correlation between Sartorius and Coloplast is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Aktiengesellschaft and Coloplast AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloplast AS and Sartorius Aktiengesellscha 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 Sartorius Aktiengesellschaft are associated (or correlated) with Coloplast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloplast AS has no effect on the direction of Sartorius Aktiengesellscha i.e., Sartorius Aktiengesellscha and Coloplast go up and down completely randomly.

Pair Corralation between Sartorius Aktiengesellscha and Coloplast

Assuming the 90 days horizon Sartorius Aktiengesellschaft is expected to generate 1.31 times more return on investment than Coloplast. However, Sartorius Aktiengesellscha is 1.31 times more volatile than Coloplast AS. It trades about 0.04 of its potential returns per unit of risk. Coloplast AS is currently generating about -0.05 per unit of risk. If you would invest  19,379  in Sartorius Aktiengesellschaft on June 30, 2025 and sell it today you would earn a total of  790.00  from holding Sartorius Aktiengesellschaft or generate 4.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.97%
Values	Daily Returns

Sartorius Aktiengesellschaft  vs.  Coloplast AS

Sartorius Aktiengesellscha

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Aktiengesellschaft are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sartorius Aktiengesellscha is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Coloplast AS

Risk-Adjusted Performance

Weakest

Over the last 90 days Coloplast AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Coloplast is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sartorius Aktiengesellscha and Coloplast

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

The idea behind Sartorius Aktiengesellschaft and Coloplast AS 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.