Correlation Between Helvetia Holding and Bergbahnen Engelberg

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

Diversification Opportunities for Helvetia Holding and Bergbahnen Engelberg

0.56

Correlation Coefficient

Helvetia Holding  Bergbahnen Engelberg

Very weak diversification

The 3 months correlation between Helvetia and Bergbahnen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Helvetia Holding AG and Bergbahnen Engelberg Truebsee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergbahnen Engelberg 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 Bergbahnen Engelberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergbahnen Engelberg has no effect on the direction of Helvetia Holding i.e., Helvetia Holding and Bergbahnen Engelberg go up and down completely randomly.

Pair Corralation between Helvetia Holding and Bergbahnen Engelberg

Assuming the 90 days trading horizon Helvetia Holding AG is expected to generate 1.02 times more return on investment than Bergbahnen Engelberg. However, Helvetia Holding is 1.02 times more volatile than Bergbahnen Engelberg Truebsee. It trades about 0.2 of its potential returns per unit of risk. Bergbahnen Engelberg Truebsee is currently generating about 0.09 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	Weak
Accuracy	100.0%
Values	Daily Returns

Helvetia Holding AG  vs.  Bergbahnen Engelberg Truebsee

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.

Bergbahnen Engelberg

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bergbahnen Engelberg Truebsee are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Bergbahnen Engelberg 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 Bergbahnen Engelberg

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

The idea behind Helvetia Holding AG and Bergbahnen Engelberg Truebsee 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.