Correlation Between Leclanche and Stadler Rail

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

By analyzing existing cross correlation between Leclanche SA and Stadler Rail AG, you can compare the effects of market volatilities on Leclanche and Stadler Rail 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 Stadler Rail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leclanche and Stadler Rail.

Diversification Opportunities for Leclanche and Stadler Rail

0.49

Correlation Coefficient

Leclanche  Stadler Rail

Very weak diversification

The 3 months correlation between Leclanche and Stadler is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Leclanche SA and Stadler Rail AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadler Rail AG 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 Stadler Rail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadler Rail AG has no effect on the direction of Leclanche i.e., Leclanche and Stadler Rail go up and down completely randomly.

Pair Corralation between Leclanche and Stadler Rail

Assuming the 90 days trading horizon Leclanche SA is expected to under-perform the Stadler Rail. In addition to that, Leclanche is 3.84 times more volatile than Stadler Rail AG. It trades about -0.06 of its total potential returns per unit of risk. Stadler Rail AG is currently generating about -0.09 per unit of volatility. If you would invest  2,118  in Stadler Rail AG on September 13, 2025 and sell it today you would lose (170.00) from holding Stadler Rail AG or give up 8.03% of portfolio value over 90 days.

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

Leclanche SA  vs.  Stadler Rail AG

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 January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Stadler Rail AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Stadler Rail AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Leclanche and Stadler Rail

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

The idea behind Leclanche SA and Stadler Rail 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..