Correlation Between PSP Swiss and Helvetia Holding
Can any of the company-specific risk be diversified away by investing in both PSP Swiss 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 PSP Swiss and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSP Swiss Property and Helvetia Holding AG, you can compare the effects of market volatilities on PSP Swiss 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 PSP Swiss with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSP Swiss and Helvetia Holding.
Diversification Opportunities for PSP Swiss and Helvetia Holding
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between PSP and Helvetia is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding PSP Swiss Property and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and PSP Swiss 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 PSP Swiss Property 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 PSP Swiss i.e., PSP Swiss and Helvetia Holding go up and down completely randomly.
Pair Corralation between PSP Swiss and Helvetia Holding
Assuming the 90 days trading horizon PSP Swiss Property is expected to generate 0.97 times more return on investment than Helvetia Holding. However, PSP Swiss Property is 1.03 times less risky than Helvetia Holding. It trades about 0.06 of its potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.01 per unit of risk. If you would invest 12,370 in PSP Swiss Property on August 29, 2024 and sell it today you would earn a total of 120.00 from holding PSP Swiss Property or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSP Swiss Property vs. Helvetia Holding AG
Performance |
| Timeline |
| PSP Swiss Property |
| Helvetia Holding |
PSP Swiss and Helvetia Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSP Swiss and Helvetia Holding
The main advantage of trading using opposite PSP Swiss and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSP Swiss 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.| PSP Swiss vs. Siegfried Holding | PSP Swiss vs. VAT Group AG | PSP Swiss vs. Lonza Group AG | PSP Swiss vs. Straumann Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |