Correlation Between Helvetia Holding and Jungfraubahn Holding

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

Diversification Opportunities for Helvetia Holding and Jungfraubahn Holding

0.75

Correlation Coefficient

Helvetia Holding  Jungfraubahn Holding

Poor diversification

The 3 months correlation between Helvetia and Jungfraubahn is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn 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 Jungfraubahn Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungfraubahn Holding has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Jungfraubahn Holding go up and down completely randomly.

Pair Corralation between Helvetia Holding and Jungfraubahn Holding

Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 1.1 times more return on investment than Jungfraubahn Holding. However, Helvetia Holding is 1.1 times more volatile than Jungfraubahn Holding AG. It trades about 0.2 of its potential returns per unit of risk. Jungfraubahn Holding AG is currently generating about 0.16 per unit of risk. If you would invest  17,453  in Helvetia Holding AG on April 24, 2025 and sell it today you would earn a total of  2,057  from holding Helvetia Holding AG or generate 11.79% 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.  Jungfraubahn Holding 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 15 (%) 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.

Jungfraubahn Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jungfraubahn Holding AG are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jungfraubahn Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Helvetia Holding and Jungfraubahn Holding

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

The idea behind Helvetia Holding AG and Jungfraubahn 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.