Correlation Between Helvetia Holding and Swisscom

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

Diversification Opportunities for Helvetia Holding and Swisscom

0.76

Correlation Coefficient

Helvetia Holding  Swisscom

Poor diversification

The 3 months correlation between Helvetia and Swisscom is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Swisscom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swisscom AG 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 Swisscom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swisscom AG has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Swisscom go up and down completely randomly.

Pair Corralation between Helvetia Holding and Swisscom

Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 1.3 times more return on investment than Swisscom. However, Helvetia Holding is 1.3 times more volatile than Swisscom AG. It trades about 0.17 of its potential returns per unit of risk. Swisscom AG is currently generating about 0.09 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	Significant
Accuracy	98.39%
Values	Daily Returns

Helvetia Holding AG  vs.  Swisscom 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.

Swisscom AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Swisscom AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Swisscom 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 Swisscom

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

The idea behind Helvetia Holding AG and Swisscom 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.