Correlation Between Klingelnberg and Georg Fischer

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

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

Diversification Opportunities for Klingelnberg and Georg Fischer

0.83

Correlation Coefficient

Klingelnberg  Georg Fischer

Very poor diversification

The 3 months correlation between Klingelnberg and Georg is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Klingelnberg 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 Klingelnberg 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 Klingelnberg 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 Klingelnberg i.e., Klingelnberg and Georg Fischer go up and down completely randomly.

Pair Corralation between Klingelnberg and Georg Fischer

Assuming the 90 days trading horizon Klingelnberg AG is expected to generate 1.6 times more return on investment than Georg Fischer. However, Klingelnberg is 1.6 times more volatile than Georg Fischer AG. It trades about 0.16 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  1,060  in Klingelnberg AG on April 23, 2025 and sell it today you would earn a total of  250.00  from holding Klingelnberg AG or generate 23.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Klingelnberg AG  vs.  Georg Fischer AG

Klingelnberg AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Klingelnberg AG are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Klingelnberg 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 Klingelnberg and Georg Fischer

The main advantage of trading using opposite Klingelnberg and Georg Fischer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klingelnberg 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 Klingelnberg 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.