Correlation Between Helvetia Holding and Orior AG
Can any of the company-specific risk be diversified away by investing in both Helvetia Holding and Orior AG 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 Helvetia Holding and Orior AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helvetia Holding AG and Orior AG, you can compare the effects of market volatilities on Helvetia Holding and Orior AG 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 Helvetia Holding with a short position of Orior AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helvetia Holding and Orior AG.
Diversification Opportunities for Helvetia Holding and Orior AG
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Helvetia and Orior is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Orior AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orior AG and Helvetia Holding 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 Helvetia Holding AG are associated (or correlated) with Orior AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orior AG has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Orior AG go up and down completely randomly.
Pair Corralation between Helvetia Holding and Orior AG
Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 0.62 times more return on investment than Orior AG. However, Helvetia Holding AG is 1.61 times less risky than Orior AG. It trades about 0.18 of its potential returns per unit of risk. Orior AG is currently generating about -0.17 per unit of risk. If you would invest 12,000 in Helvetia Holding AG on September 2, 2024 and sell it today you would earn a total of 3,440 from holding Helvetia Holding AG or generate 28.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helvetia Holding AG vs. Orior AG
Performance |
| Timeline |
| Helvetia Holding |
| Orior AG |
Helvetia Holding and Orior AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helvetia Holding and Orior AG
The main advantage of trading using opposite Helvetia Holding and Orior AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, Orior AG 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 Orior AG will offset losses from the drop in Orior AG's long position.| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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