Correlation Between Coloplast and Sartorius Aktiengesellscha

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

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

Diversification Opportunities for Coloplast and Sartorius Aktiengesellscha

-0.14

Correlation Coefficient

Coloplast  Sartorius Aktiengesellscha

Good diversification

The 3 months correlation between Coloplast and Sartorius is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast A and Sartorius Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Aktiengesellscha and Coloplast 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 Coloplast A are associated (or correlated) with Sartorius Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Aktiengesellscha has no effect on the direction of Coloplast i.e., Coloplast and Sartorius Aktiengesellscha go up and down completely randomly.

Pair Corralation between Coloplast and Sartorius Aktiengesellscha

Assuming the 90 days horizon Coloplast A is expected to under-perform the Sartorius Aktiengesellscha. But the pink sheet apears to be less risky and, when comparing its historical volatility, Coloplast A is 2.4 times less risky than Sartorius Aktiengesellscha. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Sartorius Aktiengesellschaft is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  26,840  in Sartorius Aktiengesellschaft on October 8, 2025 and sell it today you would lose (4,340) from holding Sartorius Aktiengesellschaft or give up 16.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	70.31%
Values	Daily Returns

Coloplast A  vs.  Sartorius Aktiengesellschaft

Coloplast A

Risk-Adjusted Performance

Weakest

Over the last 90 days Coloplast A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Coloplast is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sartorius Aktiengesellscha

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Aktiengesellschaft are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sartorius Aktiengesellscha may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Coloplast and Sartorius Aktiengesellscha

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

The idea behind Coloplast A and Sartorius Aktiengesellschaft 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.