Correlation Between Swiss Prime and Helvetia Holding
Can any of the company-specific risk be diversified away by investing in both Swiss Prime 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 Swiss Prime and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Prime Site and Helvetia Holding AG, you can compare the effects of market volatilities on Swiss Prime 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 Swiss Prime with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Prime and Helvetia Holding.
Diversification Opportunities for Swiss Prime and Helvetia Holding
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swiss and Helvetia is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Prime Site and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Swiss Prime 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 Swiss Prime Site 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 Swiss Prime i.e., Swiss Prime and Helvetia Holding go up and down completely randomly.
Pair Corralation between Swiss Prime and Helvetia Holding
Assuming the 90 days trading horizon Swiss Prime Site is expected to generate 0.93 times more return on investment than Helvetia Holding. However, Swiss Prime Site is 1.08 times less risky than Helvetia Holding. It trades about 0.02 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 9,525 in Swiss Prime Site on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Swiss Prime Site or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Prime Site vs. Helvetia Holding AG
Performance |
| Timeline |
| Swiss Prime Site |
| Helvetia Holding |
Swiss Prime and Helvetia Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Prime and Helvetia Holding
The main advantage of trading using opposite Swiss Prime and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Prime 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.| Swiss Prime vs. PSP Swiss Property | Swiss Prime vs. Allreal Holding | Swiss Prime vs. Helvetia Holding AG | Swiss Prime vs. Baloise 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| 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 | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |