Correlation Between EFG International and Georg Fischer

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

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

Diversification Opportunities for EFG International and Georg Fischer

0.68

Correlation Coefficient

EFG International  Georg Fischer

Poor diversification

The 3 months correlation between EFG and Georg is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding EFG International 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 EFG International 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 EFG International 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 EFG International i.e., EFG International and Georg Fischer go up and down completely randomly.

Pair Corralation between EFG International and Georg Fischer

Assuming the 90 days trading horizon EFG International AG is expected to generate 0.96 times more return on investment than Georg Fischer. However, EFG International AG is 1.04 times less risky than Georg Fischer. It trades about 0.38 of its potential returns per unit of risk. Georg Fischer AG is currently generating about 0.1 per unit of risk. If you would invest  1,176  in EFG International AG on April 23, 2025 and sell it today you would earn a total of  432.00  from holding EFG International AG or generate 36.73% return on investment over 90 days.

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

EFG International AG  vs.  Georg Fischer AG

EFG International

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in EFG International AG are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, EFG International showed solid returns over the last few months and may actually be approaching a breakup point.

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 8 (%) 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 EFG International and Georg Fischer

The main advantage of trading using opposite EFG International and Georg Fischer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EFG International 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 EFG International 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.