Correlation Between Andritz AG and Shimizu Corp

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

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

Diversification Opportunities for Andritz AG and Shimizu Corp

0.0

Correlation Coefficient

Andritz AG  Shimizu Corp

Pay attention - limited upside

The 3 months correlation between Andritz and Shimizu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Andritz AG ADR and Shimizu Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shimizu Corp ADR and Andritz AG 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 Andritz AG ADR are associated (or correlated) with Shimizu Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shimizu Corp ADR has no effect on the direction of Andritz AG i.e., Andritz AG and Shimizu Corp go up and down completely randomly.

Pair Corralation between Andritz AG and Shimizu Corp

If you would invest  1,489  in Andritz AG ADR on October 8, 2025 and sell it today you would earn a total of  112.00  from holding Andritz AG ADR or generate 7.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Andritz AG ADR  vs.  Shimizu Corp ADR

Andritz AG ADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Andritz AG ADR are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Andritz AG showed solid returns over the last few months and may actually be approaching a breakup point.

Shimizu Corp ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days Shimizu Corp ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Shimizu Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Andritz AG and Shimizu Corp

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

The idea behind Andritz AG ADR and Shimizu Corp ADR 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.