Correlation Between BVZ Holding and Orell Fuessli

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

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

Diversification Opportunities for BVZ Holding and Orell Fuessli

0.36

Correlation Coefficient

BVZ Holding  Orell Fuessli

Weak diversification

The 3 months correlation between BVZ and Orell is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BVZ Holding AG and Orell Fuessli Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orell Fuessli Holding and BVZ 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 BVZ Holding AG are associated (or correlated) with Orell Fuessli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orell Fuessli Holding has no effect on the direction of BVZ Holding i.e., BVZ Holding and Orell Fuessli go up and down completely randomly.

Pair Corralation between BVZ Holding and Orell Fuessli

Assuming the 90 days trading horizon BVZ Holding AG is expected to generate 1.21 times more return on investment than Orell Fuessli. However, BVZ Holding is 1.21 times more volatile than Orell Fuessli Holding. It trades about 0.06 of its potential returns per unit of risk. Orell Fuessli Holding is currently generating about 0.05 per unit of risk. If you would invest  103,000  in BVZ Holding AG on September 1, 2025 and sell it today you would earn a total of  5,000  from holding BVZ Holding AG or generate 4.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.97%
Values	Daily Returns

BVZ Holding AG  vs.  Orell Fuessli Holding

BVZ Holding AG

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BVZ Holding AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, BVZ Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Orell Fuessli Holding

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Orell Fuessli Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Orell Fuessli 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 BVZ Holding and Orell Fuessli

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

The idea behind BVZ Holding AG and Orell Fuessli Holding 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.