Correlation Between PSP Swiss and Helvetia Holding

Can any of the company-specific risk be diversified away by investing in both PSP Swiss and Helvetia 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 PSP Swiss and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PSP Swiss Property and Helvetia Holding AG, you can compare the effects of market volatilities on PSP Swiss and Helvetia 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 PSP Swiss with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSP Swiss and Helvetia Holding.

Diversification Opportunities for PSP Swiss and Helvetia Holding

0.12

Correlation Coefficient

PSP Swiss  Helvetia Holding

Average diversification

The 3 months correlation between PSP and Helvetia is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PSP Swiss Property and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and PSP Swiss 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 PSP Swiss Property are associated (or correlated) with Helvetia Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helvetia Holding has no effect on the direction of PSP Swiss i.e., PSP Swiss and Helvetia Holding go up and down completely randomly.

Pair Corralation between PSP Swiss and Helvetia Holding

Assuming the 90 days trading horizon PSP Swiss Property is expected to under-perform the Helvetia Holding. But the stock apears to be less risky and, when comparing its historical volatility, PSP Swiss Property is 1.11 times less risky than Helvetia Holding. The stock trades about -0.04 of its potential returns per unit of risk. The Helvetia Holding AG is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  17,896  in Helvetia Holding AG on April 21, 2025 and sell it today you would earn a total of  1,694  from holding Helvetia Holding AG or generate 9.47% return on investment over 90 days.

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

PSP Swiss Property  vs.  Helvetia Holding AG

PSP Swiss Property

Risk-Adjusted Performance

Very Weak

Over the last 90 days PSP Swiss Property has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, PSP Swiss is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 12 (%) 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.

Pair Trading with PSP Swiss and Helvetia Holding

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

The idea behind PSP Swiss Property and Helvetia 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.