Correlation Between Berner Kantonalbank and Helvetia Holding
Can any of the company-specific risk be diversified away by investing in both Berner Kantonalbank 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 Berner Kantonalbank and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berner Kantonalbank AG and Helvetia Holding AG, you can compare the effects of market volatilities on Berner Kantonalbank 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 Berner Kantonalbank with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berner Kantonalbank and Helvetia Holding.
Diversification Opportunities for Berner Kantonalbank and Helvetia Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berner and Helvetia is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Berner Kantonalbank AG and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Berner Kantonalbank 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 Berner Kantonalbank AG 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 Berner Kantonalbank i.e., Berner Kantonalbank and Helvetia Holding go up and down completely randomly.
Pair Corralation between Berner Kantonalbank and Helvetia Holding
Assuming the 90 days trading horizon Berner Kantonalbank is expected to generate 3.8 times less return on investment than Helvetia Holding. But when comparing it to its historical volatility, Berner Kantonalbank AG is 1.61 times less risky than Helvetia Holding. It trades about 0.04 of its potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 14,970 in Helvetia Holding AG on August 24, 2024 and sell it today you would earn a total of 250.00 from holding Helvetia Holding AG or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berner Kantonalbank AG vs. Helvetia Holding AG
Performance |
| Timeline |
| Berner Kantonalbank |
| Helvetia Holding |
Berner Kantonalbank and Helvetia Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berner Kantonalbank and Helvetia Holding
The main advantage of trading using opposite Berner Kantonalbank and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berner Kantonalbank 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.| Berner Kantonalbank vs. Banque Cantonale | Berner Kantonalbank vs. Luzerner Kantonalbank AG | Berner Kantonalbank vs. Helvetia Holding AG | Berner Kantonalbank vs. Vontobel Holding |
| Helvetia Holding vs. Swiss Life Holding | Helvetia Holding vs. Baloise Holding AG | Helvetia Holding vs. Swiss Re AG | Helvetia Holding vs. Zurich Insurance Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |