Correlation Between Interroll Holding and ABB

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

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

Diversification Opportunities for Interroll Holding and ABB

0.8

Correlation Coefficient

Interroll Holding  ABB

Very poor diversification

The 3 months correlation between Interroll and ABB is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Interroll Holding AG and ABB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABB and Interroll 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 Interroll Holding AG are associated (or correlated) with ABB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABB has no effect on the direction of Interroll Holding i.e., Interroll Holding and ABB go up and down completely randomly.

Pair Corralation between Interroll Holding and ABB

Assuming the 90 days trading horizon Interroll Holding AG is expected to generate 1.23 times more return on investment than ABB. However, Interroll Holding is 1.23 times more volatile than ABB. It trades about 0.26 of its potential returns per unit of risk. ABB is currently generating about 0.21 per unit of risk. If you would invest  162,932  in Interroll Holding AG on April 22, 2025 and sell it today you would earn a total of  68,068  from holding Interroll Holding AG or generate 41.78% return on investment over 90 days.

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

Interroll Holding AG  vs.  ABB

Interroll Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Interroll Holding AG are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Interroll Holding showed solid returns over the last few months and may actually be approaching a breakup point.

ABB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ABB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, ABB showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interroll Holding and ABB

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

The idea behind Interroll Holding AG and ABB 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.