Correlation Between Helvetia Holding and Zuger Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Helvetia Holding and Zuger Kantonalbank 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 Zuger Kantonalbank 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 Zuger Kantonalbank, you can compare the effects of market volatilities on Helvetia Holding and Zuger Kantonalbank 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 Zuger Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helvetia Holding and Zuger Kantonalbank.
Diversification Opportunities for Helvetia Holding and Zuger Kantonalbank
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Helvetia and Zuger is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Zuger Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zuger Kantonalbank 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 Zuger Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zuger Kantonalbank has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Zuger Kantonalbank go up and down completely randomly.
Pair Corralation between Helvetia Holding and Zuger Kantonalbank
Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 1.48 times more return on investment than Zuger Kantonalbank. However, Helvetia Holding is 1.48 times more volatile than Zuger Kantonalbank. It trades about 0.19 of its potential returns per unit of risk. Zuger Kantonalbank is currently generating about -0.07 per unit of risk. If you would invest 14,700 in Helvetia Holding AG on September 5, 2024 and sell it today you would earn a total of 430.00 from holding Helvetia Holding AG or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Helvetia Holding AG vs. Zuger Kantonalbank
Performance |
| Timeline |
| Helvetia Holding |
| Zuger Kantonalbank |
Helvetia Holding and Zuger Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helvetia Holding and Zuger Kantonalbank
The main advantage of trading using opposite Helvetia Holding and Zuger Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, Zuger Kantonalbank 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 Zuger Kantonalbank will offset losses from the drop in Zuger Kantonalbank'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 |
| Zuger Kantonalbank vs. Helvetia Holding AG | Zuger Kantonalbank vs. Swiss Life Holding | Zuger Kantonalbank vs. Baloise Holding AG | Zuger Kantonalbank vs. Logitech International SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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