Correlation Between Sulzer AG and Accelleron Industries

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

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

Diversification Opportunities for Sulzer AG and Accelleron Industries

0.82

Correlation Coefficient

Sulzer AG  Accelleron Industries

Very poor diversification

The 3 months correlation between Sulzer and Accelleron is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sulzer AG and Accelleron Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelleron Industries and Sulzer 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 Sulzer AG are associated (or correlated) with Accelleron Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelleron Industries has no effect on the direction of Sulzer AG i.e., Sulzer AG and Accelleron Industries go up and down completely randomly.

Pair Corralation between Sulzer AG and Accelleron Industries

Assuming the 90 days trading horizon Sulzer AG is expected to generate 1.01 times more return on investment than Accelleron Industries. However, Sulzer AG is 1.01 times more volatile than Accelleron Industries AG. It trades about -0.14 of its potential returns per unit of risk. Accelleron Industries AG is currently generating about -0.16 per unit of risk. If you would invest  15,360  in Sulzer AG on August 18, 2025 and sell it today you would lose (1,960) from holding Sulzer AG or give up 12.76% of portfolio value over 90 days.

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

Sulzer AG  vs.  Accelleron Industries AG

Sulzer AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Sulzer AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Accelleron Industries

Risk-Adjusted Performance

Weakest

Over the last 90 days Accelleron Industries AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Sulzer AG and Accelleron Industries

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

The idea behind Sulzer AG and Accelleron Industries AG 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..