Correlation Between OC Oerlikon and EFG International

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

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

Diversification Opportunities for OC Oerlikon and EFG International

0.33

Correlation Coefficient

OC Oerlikon  EFG International

Weak diversification

The 3 months correlation between OERL and EFG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and EFG International AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EFG International and OC Oerlikon 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 OC Oerlikon Corp are associated (or correlated) with EFG International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EFG International has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and EFG International go up and down completely randomly.

Pair Corralation between OC Oerlikon and EFG International

Assuming the 90 days trading horizon OC Oerlikon is expected to generate 1.79 times less return on investment than EFG International. In addition to that, OC Oerlikon is 2.08 times more volatile than EFG International AG. It trades about 0.1 of its total potential returns per unit of risk. EFG International AG is currently generating about 0.38 per unit of volatility. 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	Very Weak
Accuracy	98.39%
Values	Daily Returns

OC Oerlikon Corp  vs.  EFG International AG

OC Oerlikon Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OC Oerlikon Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, OC Oerlikon showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with OC Oerlikon and EFG International

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

The idea behind OC Oerlikon Corp and EFG International 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.