Correlation Between Leclanche and Orell Fuessli

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

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

Diversification Opportunities for Leclanche and Orell Fuessli

-0.33

Correlation Coefficient

Leclanche  Orell Fuessli

Very good diversification

The 3 months correlation between Leclanche and Orell is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Leclanche SA 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 Leclanche 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 Leclanche SA 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 Leclanche i.e., Leclanche and Orell Fuessli go up and down completely randomly.

Pair Corralation between Leclanche and Orell Fuessli

Assuming the 90 days trading horizon Leclanche SA is expected to under-perform the Orell Fuessli. In addition to that, Leclanche is 3.77 times more volatile than Orell Fuessli Holding. It trades about -0.05 of its total potential returns per unit of risk. Orell Fuessli Holding is currently generating about 0.05 per unit of volatility. If you would invest  10,950  in Orell Fuessli Holding on August 20, 2025 and sell it today you would earn a total of  450.00  from holding Orell Fuessli Holding or generate 4.11% return on investment over 90 days.

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

Leclanche SA  vs.  Orell Fuessli Holding

Leclanche SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Leclanche SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture 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 Leclanche and Orell Fuessli

The main advantage of trading using opposite Leclanche and Orell Fuessli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leclanche 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 Leclanche SA 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.