Correlation Between Julius Baer and Helvetia Holding

Can any of the company-specific risk be diversified away by investing in both Julius Baer 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 Julius Baer and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Julius Baer Gruppe and Helvetia Holding AG, you can compare the effects of market volatilities on Julius Baer 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 Julius Baer with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Helvetia Holding.

Diversification Opportunities for Julius Baer and Helvetia Holding

0.38

Correlation Coefficient

Julius Baer  Helvetia Holding

Weak diversification

The 3 months correlation between Julius and Helvetia is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Julius Baer 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 Julius Baer Gruppe 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 Julius Baer i.e., Julius Baer and Helvetia Holding go up and down completely randomly.

Pair Corralation between Julius Baer and Helvetia Holding

Assuming the 90 days trading horizon Julius Baer is expected to generate 2.93 times less return on investment than Helvetia Holding. In addition to that, Julius Baer is 2.49 times more volatile than Helvetia Holding AG. It trades about 0.05 of its total potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.39 per unit of volatility. If you would invest  14,940  in Helvetia Holding AG on December 30, 2024 and sell it today you would earn a total of  3,470  from holding Helvetia Holding AG or generate 23.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Julius Baer Gruppe  vs.  Helvetia Holding AG

Julius Baer Gruppe

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Baer Gruppe are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Julius Baer may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Helvetia Holding

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Helvetia Holding AG are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Helvetia Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Julius Baer and Helvetia Holding

The main advantage of trading using opposite Julius Baer and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Baer 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.

The idea behind Julius Baer Gruppe and Helvetia Holding AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..