Correlation Between Helvetia Holding and Leonteq AG

Can any of the company-specific risk be diversified away by investing in both Helvetia Holding and Leonteq AG 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 Leonteq AG 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 Leonteq AG, you can compare the effects of market volatilities on Helvetia Holding and Leonteq AG 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 Leonteq AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helvetia Holding and Leonteq AG.

Diversification Opportunities for Helvetia Holding and Leonteq AG

-0.33

Correlation Coefficient

Helvetia Holding  Leonteq AG

Very good diversification

The 3 months correlation between Helvetia and Leonteq is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Leonteq AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leonteq AG 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 Leonteq AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leonteq AG has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Leonteq AG go up and down completely randomly.

Pair Corralation between Helvetia Holding and Leonteq AG

Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 0.62 times more return on investment than Leonteq AG. However, Helvetia Holding AG is 1.61 times less risky than Leonteq AG. It trades about 0.16 of its potential returns per unit of risk. Leonteq AG is currently generating about -0.12 per unit of risk. If you would invest  13,650  in Helvetia Holding AG on September 13, 2024 and sell it today you would earn a total of  1,490  from holding Helvetia Holding AG or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Helvetia Holding AG  vs.  Leonteq AG

Helvetia Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Helvetia Holding AG are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Helvetia Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Leonteq AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Leonteq AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Helvetia Holding and Leonteq AG

The main advantage of trading using opposite Helvetia Holding and Leonteq AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, Leonteq AG 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 Leonteq AG will offset losses from the drop in Leonteq AG's long position.

The idea behind Helvetia Holding AG and Leonteq 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.