Correlation Between Clariant and Helvetia Holding

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

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

Diversification Opportunities for Clariant and Helvetia Holding

0.4

Correlation Coefficient

Clariant  Helvetia Holding

Very weak diversification

The 3 months correlation between Clariant and Helvetia is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Clariant AG and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Clariant 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 Clariant AG are associated (or correlated) with Helvetia Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helvetia Holding has no effect on the direction of Clariant i.e., Clariant and Helvetia Holding go up and down completely randomly.

Pair Corralation between Clariant and Helvetia Holding

Assuming the 90 days trading horizon Clariant is expected to generate 2.01 times less return on investment than Helvetia Holding. In addition to that, Clariant is 2.04 times more volatile than Helvetia Holding AG. It trades about 0.05 of its total potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.2 per unit of volatility. If you would invest  17,453  in Helvetia Holding AG on April 24, 2025 and sell it today you would earn a total of  2,117  from holding Helvetia Holding AG or generate 12.13% return on investment over 90 days.

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

Clariant AG  vs.  Helvetia Holding AG

Clariant AG

Risk-Adjusted Performance

Insignificant

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

Helvetia Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Helvetia Holding AG are ranked lower than 16 (%) 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 August 2025.

Pair Trading with Clariant and Helvetia Holding

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

The idea behind Clariant AG and Helvetia Holding 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.