Correlation Between Leonteq AG and S H

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

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

Diversification Opportunities for Leonteq AG and S H

-0.62

Correlation Coefficient

Leonteq AG  S H

Excellent diversification

The 3 months correlation between Leonteq and SHLTN is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Leonteq AG and S H L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S H L and Leonteq AG 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 Leonteq AG are associated (or correlated) with S H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S H L has no effect on the direction of Leonteq AG i.e., Leonteq AG and S H go up and down completely randomly.

Pair Corralation between Leonteq AG and S H

Assuming the 90 days trading horizon Leonteq AG is expected to generate 0.53 times more return on investment than S H. However, Leonteq AG is 1.89 times less risky than S H. It trades about 0.31 of its potential returns per unit of risk. S H L is currently generating about -0.01 per unit of risk. If you would invest  1,510  in Leonteq AG on April 24, 2025 and sell it today you would earn a total of  800.00  from holding Leonteq AG or generate 52.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

Leonteq AG  vs.  S H L

Leonteq AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Leonteq AG are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Leonteq AG showed solid returns over the last few months and may actually be approaching a breakup point.

S H L

Risk-Adjusted Performance

Very Weak

Over the last 90 days S H L has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, S H is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Leonteq AG and S H

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

The idea behind Leonteq AG and S H L 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.