Correlation Between Groupe Pizzorno and Sartorius Stedim

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

By analyzing existing cross correlation between Groupe Pizzorno Environnement and Sartorius Stedim Biotech, you can compare the effects of market volatilities on Groupe Pizzorno and Sartorius Stedim 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 Groupe Pizzorno with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Pizzorno and Sartorius Stedim.

Diversification Opportunities for Groupe Pizzorno and Sartorius Stedim

-0.47

Correlation Coefficient

Groupe Pizzorno  Sartorius Stedim

Very good diversification

The 3 months correlation between Groupe and Sartorius is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Pizzorno Environnement and Sartorius Stedim Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Stedim Biotech and Groupe Pizzorno 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 Groupe Pizzorno Environnement are associated (or correlated) with Sartorius Stedim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Stedim Biotech has no effect on the direction of Groupe Pizzorno i.e., Groupe Pizzorno and Sartorius Stedim go up and down completely randomly.

Pair Corralation between Groupe Pizzorno and Sartorius Stedim

Assuming the 90 days trading horizon Groupe Pizzorno Environnement is expected to generate 1.15 times more return on investment than Sartorius Stedim. However, Groupe Pizzorno is 1.15 times more volatile than Sartorius Stedim Biotech. It trades about 0.06 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about -0.05 per unit of risk. If you would invest  5,843  in Groupe Pizzorno Environnement on April 23, 2025 and sell it today you would earn a total of  357.00  from holding Groupe Pizzorno Environnement or generate 6.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Groupe Pizzorno Environnement  vs.  Sartorius Stedim Biotech

Groupe Pizzorno Envi

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Pizzorno Environnement are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Groupe Pizzorno may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Sartorius Stedim Biotech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sartorius Stedim Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Sartorius Stedim is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Groupe Pizzorno and Sartorius Stedim

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

The idea behind Groupe Pizzorno Environnement and Sartorius Stedim Biotech 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.