Correlation Between Nebag Ag and Helvetia Holding
Can any of the company-specific risk be diversified away by investing in both Nebag Ag and Helvetia 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 Nebag Ag and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebag ag and Helvetia Holding AG, you can compare the effects of market volatilities on Nebag Ag and Helvetia 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 Nebag Ag with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebag Ag and Helvetia Holding.
Diversification Opportunities for Nebag Ag and Helvetia Holding
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nebag and Helvetia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nebag ag and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Nebag Ag 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 Nebag ag are associated (or correlated) with Helvetia Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helvetia Holding has no effect on the direction of Nebag Ag i.e., Nebag Ag and Helvetia Holding go up and down completely randomly.
Pair Corralation between Nebag Ag and Helvetia Holding
Assuming the 90 days trading horizon Nebag ag is expected to under-perform the Helvetia Holding. In addition to that, Nebag Ag is 1.23 times more volatile than Helvetia Holding AG. It trades about -0.04 of its total potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.06 per unit of volatility. If you would invest 12,536 in Helvetia Holding AG on September 12, 2024 and sell it today you would earn a total of 2,474 from holding Helvetia Holding AG or generate 19.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.11% |
| Values | Daily Returns |
Nebag ag vs. Helvetia Holding AG
Performance |
| Timeline |
| Nebag ag |
| Helvetia Holding |
Nebag Ag and Helvetia Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebag Ag and Helvetia Holding
The main advantage of trading using opposite Nebag Ag and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebag Ag position performs unexpectedly, Helvetia 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 Helvetia Holding will offset losses from the drop in Helvetia Holding's long position.| Nebag Ag vs. Bachem Holding AG | Nebag Ag vs. Kudelski | Nebag Ag vs. Alpine Select AG | Nebag Ag vs. BB Biotech AG |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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