Correlation Between Helvetia Holding and VAT Group
Can any of the company-specific risk be diversified away by investing in both Helvetia Holding and VAT Group 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 VAT Group 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 VAT Group AG, you can compare the effects of market volatilities on Helvetia Holding and VAT Group 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 VAT Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helvetia Holding and VAT Group.
Diversification Opportunities for Helvetia Holding and VAT Group
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Helvetia and VAT is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and VAT Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VAT Group 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 VAT Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VAT Group AG has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and VAT Group go up and down completely randomly.
Pair Corralation between Helvetia Holding and VAT Group
Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 0.53 times more return on investment than VAT Group. However, Helvetia Holding AG is 1.9 times less risky than VAT Group. It trades about 0.08 of its potential returns per unit of risk. VAT Group AG is currently generating about 0.04 per unit of risk. If you would invest 9,762 in Helvetia Holding AG on August 29, 2024 and sell it today you would earn a total of 5,428 from holding Helvetia Holding AG or generate 55.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helvetia Holding AG vs. VAT Group AG
Performance |
| Timeline |
| Helvetia Holding |
| VAT Group AG |
Helvetia Holding and VAT Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helvetia Holding and VAT Group
The main advantage of trading using opposite Helvetia Holding and VAT Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, VAT Group 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 VAT Group will offset losses from the drop in VAT Group'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 |
| VAT Group vs. Sika AG | VAT Group vs. Straumann Holding AG | VAT Group vs. Geberit AG | VAT Group vs. Partners Group Holding |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |