Correlation Between Galderma Group and Bell AG

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

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

Diversification Opportunities for Galderma Group and Bell AG

-0.44

Correlation Coefficient

Galderma Group  Bell AG

Very good diversification

The 3 months correlation between Galderma and Bell is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Galderma Group N and Bell AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell AG and Galderma 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 Galderma Group N are associated (or correlated) with Bell AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell AG has no effect on the direction of Galderma Group i.e., Galderma Group and Bell AG go up and down completely randomly.

Pair Corralation between Galderma Group and Bell AG

Assuming the 90 days trading horizon Galderma Group N is expected to generate 1.99 times more return on investment than Bell AG. However, Galderma Group is 1.99 times more volatile than Bell AG. It trades about 0.09 of its potential returns per unit of risk. Bell AG is currently generating about -0.17 per unit of risk. If you would invest  13,530  in Galderma Group N on August 22, 2025 and sell it today you would earn a total of  1,220  from holding Galderma Group N or generate 9.02% return on investment over 90 days.

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

Galderma Group N  vs.  Bell AG

Galderma Group N

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Galderma Group N are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Galderma Group may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Bell AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Bell AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Galderma Group and Bell AG

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

The idea behind Galderma Group N and Bell 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.