Correlation Between Medmix AG and Sulzer AG

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

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

Diversification Opportunities for Medmix AG and Sulzer AG

0.0

Correlation Coefficient

Medmix AG  Sulzer AG

Pay attention - limited upside

The 3 months correlation between Medmix and Sulzer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding medmix AG and Sulzer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sulzer AG and Medmix AG 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 medmix 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 Medmix AG i.e., Medmix AG and Sulzer AG go up and down completely randomly.

Pair Corralation between Medmix AG and Sulzer AG

Assuming the 90 days trading horizon medmix AG is expected to generate 1.91 times more return on investment than Sulzer AG. However, Medmix AG is 1.91 times more volatile than Sulzer AG. It trades about 0.14 of its potential returns per unit of risk. Sulzer AG is currently generating about 0.11 per unit of risk. If you would invest  983.00  in medmix AG on April 23, 2025 and sell it today you would earn a total of  241.00  from holding medmix AG or generate 24.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

medmix AG  vs.  Sulzer AG

medmix AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in medmix AG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Medmix AG 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 Medmix AG and Sulzer AG

The main advantage of trading using opposite Medmix AG and Sulzer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medmix AG 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 medmix 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.

Check out your portfolio center.

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.