Correlation Between Emmi AG and Orior AG

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

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

Diversification Opportunities for Emmi AG and Orior AG

0.66

Correlation Coefficient

Emmi AG  Orior AG

Poor diversification

The 3 months correlation between Emmi and Orior is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Emmi AG and Orior AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orior AG and Emmi 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 Emmi AG are associated (or correlated) with Orior AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orior AG has no effect on the direction of Emmi AG i.e., Emmi AG and Orior AG go up and down completely randomly.

Pair Corralation between Emmi AG and Orior AG

Assuming the 90 days trading horizon Emmi AG is expected to generate 1.45 times less return on investment than Orior AG. But when comparing it to its historical volatility, Emmi AG is 2.62 times less risky than Orior AG. It trades about 0.02 of its potential returns per unit of risk. Orior AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,316  in Orior AG on August 15, 2025 and sell it today you would lose (12.00) from holding Orior AG or give up 0.91% of portfolio value over 90 days.

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

Emmi AG  vs.  Orior AG

Emmi AG

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Emmi AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Emmi AG is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Orior AG

Risk-Adjusted Performance

Weak

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

Pair Trading with Emmi AG and Orior AG

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

The idea behind Emmi AG and Orior 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.