Correlation Between Swiss Life and EFG International

Can any of the company-specific risk be diversified away by investing in both Swiss Life and EFG International 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 Swiss Life and EFG International into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Swiss Life and EFG International

0.27

Correlation Coefficient

Swiss Life  EFG International

Modest diversification

The 3 months correlation between Swiss and EFG is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Life Holding and EFG International AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EFG International and Swiss Life 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 Swiss Life Holding are associated (or correlated) with EFG International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EFG International has no effect on the direction of Swiss Life i.e., Swiss Life and EFG International go up and down completely randomly.

Pair Corralation between Swiss Life and EFG International

Assuming the 90 days trading horizon Swiss Life is expected to generate 2.01 times less return on investment than EFG International. But when comparing it to its historical volatility, Swiss Life Holding is 1.38 times less risky than EFG International. It trades about 0.04 of its potential returns per unit of risk. EFG International AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,602  in EFG International AG on August 3, 2025 and sell it today you would earn a total of  72.00  from holding EFG International AG or generate 4.49% return on investment over 90 days.

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

Swiss Life Holding  vs.  EFG International AG

Swiss Life Holding

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Swiss Life Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Swiss Life is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

EFG International

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in EFG International AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, EFG International is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Swiss Life and EFG International

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

The idea behind Swiss Life Holding and EFG International 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.