Correlation Between Bossard Holding and Georg Fischer

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

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

Diversification Opportunities for Bossard Holding and Georg Fischer

0.53

Correlation Coefficient

Bossard Holding  Georg Fischer

Very weak diversification

The 3 months correlation between Bossard and Georg is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bossard Holding AG and Georg Fischer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Georg Fischer AG and Bossard Holding 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 Bossard Holding AG are associated (or correlated) with Georg Fischer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Georg Fischer AG has no effect on the direction of Bossard Holding i.e., Bossard Holding and Georg Fischer go up and down completely randomly.

Pair Corralation between Bossard Holding and Georg Fischer

Assuming the 90 days trading horizon Bossard Holding AG is expected to under-perform the Georg Fischer. But the stock apears to be less risky and, when comparing its historical volatility, Bossard Holding AG is 1.03 times less risky than Georg Fischer. The stock trades about -0.04 of its potential returns per unit of risk. The Georg Fischer AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5,945  in Georg Fischer AG on April 25, 2025 and sell it today you would earn a total of  350.00  from holding Georg Fischer AG or generate 5.89% return on investment over 90 days.

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

Bossard Holding AG  vs.  Georg Fischer AG

Bossard Holding AG

Risk-Adjusted Performance

Very Weak

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

Georg Fischer AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Georg Fischer AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Georg Fischer may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bossard Holding and Georg Fischer

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

The idea behind Bossard Holding AG and Georg Fischer 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.