Correlation Between Helvetia Holding and Berner Kantonalbank

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

Diversification Opportunities for Helvetia Holding and Berner Kantonalbank

0.81

Correlation Coefficient

Helvetia Holding  Berner Kantonalbank

Very poor diversification

The 3 months correlation between Helvetia and Berner is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Berner Kantonalbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berner Kantonalbank 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 Berner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berner Kantonalbank has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Berner Kantonalbank go up and down completely randomly.

Pair Corralation between Helvetia Holding and Berner Kantonalbank

Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 1.61 times more return on investment than Berner Kantonalbank. However, Helvetia Holding is 1.61 times more volatile than Berner Kantonalbank AG. It trades about 0.17 of its potential returns per unit of risk. Berner Kantonalbank AG is currently generating about 0.18 per unit of risk. If you would invest  17,781  in Helvetia Holding AG on April 23, 2025 and sell it today you would earn a total of  1,789  from holding Helvetia Holding AG or generate 10.06% return on investment over 90 days.

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

Helvetia Holding AG  vs.  Berner Kantonalbank AG

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 13 (%) 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.

Berner Kantonalbank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Berner Kantonalbank AG are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Berner Kantonalbank may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Helvetia Holding and Berner Kantonalbank

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

The idea behind Helvetia Holding AG and Berner Kantonalbank 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.