Correlation Between Galderma Group and Chocoladefabriken

Can any of the company-specific risk be diversified away by investing in both Galderma Group and Chocoladefabriken 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 Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on Galderma Group and Chocoladefabriken 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 Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galderma Group and Chocoladefabriken.

Diversification Opportunities for Galderma Group and Chocoladefabriken

0.29

Correlation Coefficient

Galderma Group  Chocoladefabriken

Modest diversification

The 3 months correlation between Galderma and Chocoladefabriken is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Galderma Group N and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt 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 Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Galderma Group i.e., Galderma Group and Chocoladefabriken go up and down completely randomly.

Pair Corralation between Galderma Group and Chocoladefabriken

Assuming the 90 days trading horizon Galderma Group N is expected to generate 1.35 times more return on investment than Chocoladefabriken. However, Galderma Group is 1.35 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.1 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.05 per unit of risk. If you would invest  13,520  in Galderma Group N on August 19, 2025 and sell it today you would earn a total of  1,430  from holding Galderma Group N or generate 10.58% return on investment over 90 days.

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

Galderma Group N  vs.  Chocoladefabriken Lindt Spruen

Galderma Group N

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Galderma Group N are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Galderma Group may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Chocoladefabriken Lindt

Risk-Adjusted Performance

Soft

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

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

The idea behind Galderma Group N and Chocoladefabriken Lindt Spruengli 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..