Correlation Between Hubersuhner and Sulzer AG

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

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

Diversification Opportunities for Hubersuhner and Sulzer AG

0.08

Correlation Coefficient

Hubersuhner  Sulzer AG

Significant diversification

The 3 months correlation between Hubersuhner and Sulzer is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hubersuhner AG and Sulzer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sulzer AG and Hubersuhner 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 Hubersuhner AG are associated (or correlated) with Sulzer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sulzer AG has no effect on the direction of Hubersuhner i.e., Hubersuhner and Sulzer AG go up and down completely randomly.

Pair Corralation between Hubersuhner and Sulzer AG

Assuming the 90 days trading horizon Hubersuhner AG is expected to generate 0.71 times more return on investment than Sulzer AG. However, Hubersuhner AG is 1.41 times less risky than Sulzer AG. It trades about 0.45 of its potential returns per unit of risk. Sulzer AG is currently generating about 0.11 per unit of risk. If you would invest  6,830  in Hubersuhner AG on April 23, 2025 and sell it today you would earn a total of  2,200  from holding Hubersuhner AG or generate 32.21% return on investment over 90 days.

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

Hubersuhner AG  vs.  Sulzer AG

Hubersuhner AG

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Hubersuhner AG are ranked lower than 35 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Hubersuhner showed solid returns over the last few months and may actually be approaching a breakup point.

Sulzer AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sulzer AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Sulzer AG may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hubersuhner and Sulzer AG

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

The idea behind Hubersuhner AG and Sulzer 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.