Correlation Between Partners Group and Lonza Group

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

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

Diversification Opportunities for Partners Group and Lonza Group

0.37

Correlation Coefficient

Partners Group  Lonza Group

Weak diversification

The 3 months correlation between Partners and Lonza is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Partners Group Holding and Lonza Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonza Group AG and Partners Group 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 Partners Group Holding are associated (or correlated) with Lonza Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonza Group AG has no effect on the direction of Partners Group i.e., Partners Group and Lonza Group go up and down completely randomly.

Pair Corralation between Partners Group and Lonza Group

Assuming the 90 days trading horizon Partners Group Holding is expected to generate 1.65 times more return on investment than Lonza Group. However, Partners Group is 1.65 times more volatile than Lonza Group AG. It trades about 0.06 of its potential returns per unit of risk. Lonza Group AG is currently generating about -0.02 per unit of risk. 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	100.0%
Values	Daily Returns

Partners Group Holding  vs.  Lonza Group AG

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.

Lonza Group AG

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Partners Group and Lonza Group

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

The idea behind Partners Group Holding and Lonza Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.