Correlation Between Sartorius Aktiengesellscha and Sino Biopharmaceutica

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

By analyzing existing cross correlation between Sartorius Aktiengesellschaft and Sino Biopharmaceutical Ltd, you can compare the effects of market volatilities on Sartorius Aktiengesellscha and Sino Biopharmaceutica 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 Sino Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Aktiengesellscha and Sino Biopharmaceutica.

Diversification Opportunities for Sartorius Aktiengesellscha and Sino Biopharmaceutica

-0.58

Correlation Coefficient

Sartorius Aktiengesellscha  Sino Biopharmaceutica

Excellent diversification

The 3 months correlation between Sartorius and Sino is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Aktiengesellschaft and Sino Biopharmaceutical Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Biopharmaceutical 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 Sino Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Biopharmaceutical has no effect on the direction of Sartorius Aktiengesellscha i.e., Sartorius Aktiengesellscha and Sino Biopharmaceutica go up and down completely randomly.

Pair Corralation between Sartorius Aktiengesellscha and Sino Biopharmaceutica

Assuming the 90 days horizon Sartorius Aktiengesellschaft is expected to generate 3.64 times more return on investment than Sino Biopharmaceutica. However, Sartorius Aktiengesellscha is 3.64 times more volatile than Sino Biopharmaceutical Ltd. It trades about 0.1 of its potential returns per unit of risk. Sino Biopharmaceutical Ltd is currently generating about -0.18 per unit of risk. If you would invest  22,638  in Sartorius Aktiengesellschaft on October 6, 2025 and sell it today you would earn a total of  4,237  from holding Sartorius Aktiengesellschaft or generate 18.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Sartorius Aktiengesellschaft  vs.  Sino Biopharmaceutical Ltd

Sartorius Aktiengesellscha

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Aktiengesellschaft are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sartorius Aktiengesellscha reported solid returns over the last few months and may actually be approaching a breakup point.

Sino Biopharmaceutical

Risk-Adjusted Performance

Weakest

Over the last 90 days Sino Biopharmaceutical Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Sartorius Aktiengesellscha and Sino Biopharmaceutica

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

The idea behind Sartorius Aktiengesellschaft and Sino Biopharmaceutical Ltd 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.