Correlation Between Helvetia Holding and Partners Group
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
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Helvetia Holding AG vs. Partners Group Holding
Performance |
Timeline |
Helvetia Holding |
Partners Group Holding |
Helvetia Holding and Partners Group Volatility Contrast
Predicted Return Density |
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.Helvetia Holding vs. Swiss Life Holding | ||
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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