Correlation Between Julius Baer and Helvetia Holding
Can any of the company-specific risk be diversified away by investing in both Julius Baer and Helvetia Holding 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 Julius Baer and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Julius Baer Gruppe and Helvetia Holding AG, you can compare the effects of market volatilities on Julius Baer and Helvetia Holding 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 Julius Baer with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Helvetia Holding.
Diversification Opportunities for Julius Baer and Helvetia Holding
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Julius and Helvetia is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Julius Baer 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 Julius Baer Gruppe are associated (or correlated) with Helvetia Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helvetia Holding has no effect on the direction of Julius Baer i.e., Julius Baer and Helvetia Holding go up and down completely randomly.
Pair Corralation between Julius Baer and Helvetia Holding
Assuming the 90 days trading horizon Julius Baer is expected to generate 2.03 times less return on investment than Helvetia Holding. In addition to that, Julius Baer is 1.54 times more volatile than Helvetia Holding AG. It trades about 0.03 of its total potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.08 per unit of volatility. If you would invest 9,899 in Helvetia Holding AG on August 28, 2024 and sell it today you would earn a total of 5,431 from holding Helvetia Holding AG or generate 54.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Julius Baer Gruppe vs. Helvetia Holding AG
Performance |
| Timeline |
| Julius Baer Gruppe |
| Helvetia Holding |
Julius Baer and Helvetia Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Julius Baer and Helvetia Holding
The main advantage of trading using opposite Julius Baer and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Baer position performs unexpectedly, Helvetia Holding 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 Helvetia Holding will offset losses from the drop in Helvetia Holding's long position.| Julius Baer vs. Bachem Holding AG | Julius Baer vs. Kudelski | Julius Baer vs. Alpine Select AG | Julius Baer vs. BB Biotech AG |
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Check out your portfolio center.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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