Correlation Between Helvetia Holding and Warteck Invest
Can any of the company-specific risk be diversified away by investing in both Helvetia Holding and Warteck Invest 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 Warteck Invest 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 Warteck Invest, you can compare the effects of market volatilities on Helvetia Holding and Warteck Invest 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 Warteck Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helvetia Holding and Warteck Invest.
Diversification Opportunities for Helvetia Holding and Warteck Invest
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Helvetia and Warteck is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Warteck Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warteck Invest 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 Warteck Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warteck Invest has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Warteck Invest go up and down completely randomly.
Pair Corralation between Helvetia Holding and Warteck Invest
Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 2.04 times more return on investment than Warteck Invest. However, Helvetia Holding is 2.04 times more volatile than Warteck Invest. It trades about 0.18 of its potential returns per unit of risk. Warteck Invest is currently generating about 0.08 per unit of risk. If you would invest 12,010 in Helvetia Holding AG on September 3, 2024 and sell it today you would earn a total of 3,430 from holding Helvetia Holding AG or generate 28.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.22% |
| Values | Daily Returns |
Helvetia Holding AG vs. Warteck Invest
Performance |
| Timeline |
| Helvetia Holding |
| Warteck Invest |
Helvetia Holding and Warteck Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helvetia Holding and Warteck Invest
The main advantage of trading using opposite Helvetia Holding and Warteck Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, Warteck Invest 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 Warteck Invest will offset losses from the drop in Warteck Invest'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 |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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