Correlation Between Perrot Duval and Georg Fischer

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

By analyzing existing cross correlation between Perrot Duval Holding and Georg Fischer AG, you can compare the effects of market volatilities on Perrot Duval and Georg Fischer 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 Perrot Duval with a short position of Georg Fischer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perrot Duval and Georg Fischer.

Diversification Opportunities for Perrot Duval and Georg Fischer

0.75

Correlation Coefficient

Perrot Duval  Georg Fischer

Poor diversification

The 3 months correlation between Perrot and Georg is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Perrot Duval Holding and Georg Fischer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Georg Fischer AG and Perrot Duval 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 Perrot Duval Holding are associated (or correlated) with Georg Fischer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Georg Fischer AG has no effect on the direction of Perrot Duval i.e., Perrot Duval and Georg Fischer go up and down completely randomly.

Pair Corralation between Perrot Duval and Georg Fischer

Assuming the 90 days trading horizon Perrot Duval Holding is expected to generate 1.67 times more return on investment than Georg Fischer. However, Perrot Duval is 1.67 times more volatile than Georg Fischer AG. It trades about -0.05 of its potential returns per unit of risk. Georg Fischer AG is currently generating about -0.19 per unit of risk. If you would invest  5,150  in Perrot Duval Holding on September 6, 2025 and sell it today you would lose (170.00) from holding Perrot Duval Holding or give up 3.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	29.23%
Values	Daily Returns

Perrot Duval Holding  vs.  Georg Fischer AG

Perrot Duval Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Perrot Duval Holding 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 latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Georg Fischer AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Georg Fischer AG 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.

Pair Trading with Perrot Duval and Georg Fischer

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

The idea behind Perrot Duval Holding and Georg Fischer 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.