Correlation Between Helvetia Holding and Vontobel Holding
Can any of the company-specific risk be diversified away by investing in both Helvetia Holding and Vontobel 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 Helvetia Holding and Vontobel Holding 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 Vontobel Holding, you can compare the effects of market volatilities on Helvetia Holding and Vontobel 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 Helvetia Holding with a short position of Vontobel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helvetia Holding and Vontobel Holding.
Diversification Opportunities for Helvetia Holding and Vontobel Holding
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Helvetia and Vontobel is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel Holding 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 Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Vontobel Holding go up and down completely randomly.
Pair Corralation between Helvetia Holding and Vontobel Holding
Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 0.9 times more return on investment than Vontobel Holding. However, Helvetia Holding AG is 1.11 times less risky than Vontobel Holding. It trades about 0.49 of its potential returns per unit of risk. Vontobel Holding is currently generating about 0.17 per unit of risk. If you would invest 14,920 in Helvetia Holding AG on October 25, 2024 and sell it today you would earn a total of 1,160 from holding Helvetia Holding AG or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Helvetia Holding AG vs. Vontobel Holding
Performance |
| Timeline |
| Helvetia Holding |
| Vontobel Holding |
Helvetia Holding and Vontobel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helvetia Holding and Vontobel Holding
The main advantage of trading using opposite Helvetia Holding and Vontobel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, Vontobel 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 Vontobel Holding will offset losses from the drop in Vontobel Holding'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 |
| Vontobel Holding vs. Julius Baer Gruppe | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding vs. Sulzer AG | Vontobel Holding vs. Swiss Life 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 CEOs Directory module to screen CEOs from public companies around the world.
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