Correlation Between Helvetia Holding and Schindler
Can any of the company-specific risk be diversified away by investing in both Helvetia Holding and Schindler 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 Schindler 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 Schindler Ps, you can compare the effects of market volatilities on Helvetia Holding and Schindler 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 Schindler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helvetia Holding and Schindler.
Diversification Opportunities for Helvetia Holding and Schindler
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Helvetia and Schindler is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Schindler Ps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schindler Ps 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 Schindler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schindler Ps has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Schindler go up and down completely randomly.
Pair Corralation between Helvetia Holding and Schindler
Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 0.95 times more return on investment than Schindler. However, Helvetia Holding AG is 1.06 times less risky than Schindler. It trades about 0.07 of its potential returns per unit of risk. Schindler Ps is currently generating about 0.07 per unit of risk. If you would invest 11,737 in Helvetia Holding AG on August 31, 2024 and sell it today you would earn a total of 3,703 from holding Helvetia Holding AG or generate 31.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helvetia Holding AG vs. Schindler Ps
Performance |
| Timeline |
| Helvetia Holding |
| Schindler Ps |
Helvetia Holding and Schindler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helvetia Holding and Schindler
The main advantage of trading using opposite Helvetia Holding and Schindler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, Schindler 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 Schindler will offset losses from the drop in Schindler'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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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