Correlation Between Orell Fuessli and Leclanche

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

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

Diversification Opportunities for Orell Fuessli and Leclanche

-0.37

Correlation Coefficient

Orell Fuessli  Leclanche

Very good diversification

The 3 months correlation between Orell and Leclanche is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Orell Fuessli Holding and Leclanche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leclanche SA and Orell Fuessli 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 Orell Fuessli Holding are associated (or correlated) with Leclanche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leclanche SA has no effect on the direction of Orell Fuessli i.e., Orell Fuessli and Leclanche go up and down completely randomly.

Pair Corralation between Orell Fuessli and Leclanche

Assuming the 90 days trading horizon Orell Fuessli Holding is expected to generate 0.29 times more return on investment than Leclanche. However, Orell Fuessli Holding is 3.43 times less risky than Leclanche. It trades about 0.07 of its potential returns per unit of risk. Leclanche SA is currently generating about -0.09 per unit of risk. If you would invest  10,750  in Orell Fuessli Holding on August 13, 2025 and sell it today you would earn a total of  550.00  from holding Orell Fuessli Holding or generate 5.12% return on investment over 90 days.

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

Orell Fuessli Holding  vs.  Leclanche SA

Orell Fuessli Holding

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Orell Fuessli Holding are ranked lower than 5 (%) 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.

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.

Pair Trading with Orell Fuessli and Leclanche

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

The idea behind Orell Fuessli Holding and Leclanche SA 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.