Correlation Between Helvetia Holding and Vontobel Holding

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

Diversification Opportunities for Helvetia Holding and Vontobel Holding

0.47

Correlation Coefficient

Helvetia Holding  Vontobel Holding

Very weak diversification

The 3 months correlation between Helvetia and Vontobel is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel 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 Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Vontobel Holding go up and down completely randomly.

Pair Corralation between Helvetia Holding and Vontobel Holding

Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 0.5 times more return on investment than Vontobel Holding. However, Helvetia Holding AG is 2.0 times less risky than Vontobel Holding. It trades about 0.1 of its potential returns per unit of risk. Vontobel Holding is currently generating about -0.01 per unit of risk. If you would invest  18,570  in Helvetia Holding AG on May 5, 2025 and sell it today you would earn a total of  1,060  from holding Helvetia Holding AG or generate 5.71% return on investment over 90 days.

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

Helvetia Holding AG  vs.  Vontobel Holding

Helvetia Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Helvetia Holding AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Helvetia Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Vontobel Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vontobel Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Vontobel Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Helvetia Holding and Vontobel Holding

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

The idea behind Helvetia Holding AG and Vontobel 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.