Correlation Between Adecco Group and Geberit AG

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

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

Diversification Opportunities for Adecco Group and Geberit AG

0.54

Correlation Coefficient

Adecco Group  Geberit AG

Very weak diversification

The 3 months correlation between Adecco and Geberit is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group AG and Geberit AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geberit AG and Adecco Group 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 Adecco Group AG are associated (or correlated) with Geberit AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geberit AG has no effect on the direction of Adecco Group i.e., Adecco Group and Geberit AG go up and down completely randomly.

Pair Corralation between Adecco Group and Geberit AG

Assuming the 90 days trading horizon Adecco Group AG is expected to under-perform the Geberit AG. In addition to that, Adecco Group is 2.55 times more volatile than Geberit AG. It trades about -0.03 of its total potential returns per unit of risk. Geberit AG is currently generating about 0.03 per unit of volatility. If you would invest  60,040  in Geberit AG on September 12, 2025 and sell it today you would earn a total of  1,060  from holding Geberit AG or generate 1.77% return on investment over 90 days.

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

Adecco Group AG  vs.  Geberit AG

Adecco Group AG

Risk-Adjusted Performance

Weakest

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

Geberit AG

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Geberit AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Geberit AG is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Adecco Group and Geberit AG

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

The idea behind Adecco Group AG and Geberit 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.