Correlation Between Helvetia Holding and Partners Group

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

Diversification Opportunities for Helvetia Holding and Partners Group

HelvetiaPartnersDiversified AwayHelvetiaPartnersDiversified Away100%
0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Helvetia and Partners is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Partners Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Group Holding 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 Partners Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Group Holding has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Partners Group go up and down completely randomly.

Pair Corralation between Helvetia Holding and Partners Group

Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 0.86 times more return on investment than Partners Group. However, Helvetia Holding AG is 1.16 times less risky than Partners Group. It trades about 0.1 of its potential returns per unit of risk. Partners Group Holding is currently generating about 0.08 per unit of risk. If you would invest  13,710  in Helvetia Holding AG on September 16, 2024 and sell it today you would earn a total of  930.00  from holding Helvetia Holding AG or generate 6.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Helvetia Holding AG  vs.  Partners Group Holding

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 0510
JavaScript chart by amCharts 3.21.15HELN PGHN
       Timeline  
Helvetia Holding 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Helvetia Holding AG are ranked lower than 7 (%) 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec135140145150155
Partners Group Holding 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Partners Group Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Partners Group is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1,1801,2001,2201,2401,2601,2801,3001,320

Helvetia Holding and Partners Group Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.27-2.45-1.63-0.810.01440.851.712.583.44 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15HELN PGHN
       Returns  

Pair Trading with Helvetia Holding and Partners Group

The main advantage of trading using opposite Helvetia Holding and Partners Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helvetia Holding position performs unexpectedly, Partners Group 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 Partners Group will offset losses from the drop in Partners Group's long position.
The idea behind Helvetia Holding AG and Partners Group Holding 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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