Correlation Between Givaudan and Partners Group

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

By analyzing existing cross correlation between Givaudan SA and Partners Group Holding, you can compare the effects of market volatilities on Givaudan and Partners Group 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 Givaudan with a short position of Partners Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Givaudan and Partners Group.

Diversification Opportunities for Givaudan and Partners Group

0.23

Correlation Coefficient

Givaudan  Partners Group

Modest diversification

The 3 months correlation between Givaudan and Partners is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Givaudan SA and Partners Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Group Holding and Givaudan 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 Givaudan SA are associated (or correlated) with Partners Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Group Holding has no effect on the direction of Givaudan i.e., Givaudan and Partners Group go up and down completely randomly.

Pair Corralation between Givaudan and Partners Group

Assuming the 90 days trading horizon Givaudan SA is expected to under-perform the Partners Group. But the stock apears to be less risky and, when comparing its historical volatility, Givaudan SA is 1.51 times less risky than Partners Group. The stock trades about -0.08 of its potential returns per unit of risk. The Partners Group Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  104,419  in Partners Group Holding on April 24, 2025 and sell it today you would earn a total of  5,731  from holding Partners Group Holding or generate 5.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Givaudan SA  vs.  Partners Group Holding

Givaudan SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Givaudan SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Givaudan is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Partners Group Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Partners Group Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Partners Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Givaudan and Partners Group

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

The idea behind Givaudan SA and Partners Group Holding 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.