Correlation Between Jungfraubahn Holding and Swissquote Group

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Can any of the company-specific risk be diversified away by investing in both Jungfraubahn Holding and Swissquote Group 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 Jungfraubahn Holding and Swissquote Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jungfraubahn Holding AG and Swissquote Group Holding, you can compare the effects of market volatilities on Jungfraubahn Holding and Swissquote Group 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 Jungfraubahn Holding with a short position of Swissquote Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jungfraubahn Holding and Swissquote Group.

Diversification Opportunities for Jungfraubahn Holding and Swissquote Group

-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Jungfraubahn and Swissquote is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jungfraubahn Holding AG and Swissquote Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissquote Group Holding and Jungfraubahn 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 Jungfraubahn Holding AG are associated (or correlated) with Swissquote Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissquote Group Holding has no effect on the direction of Jungfraubahn Holding i.e., Jungfraubahn Holding and Swissquote Group go up and down completely randomly.

Pair Corralation between Jungfraubahn Holding and Swissquote Group

Assuming the 90 days trading horizon Jungfraubahn Holding AG is expected to generate 0.35 times more return on investment than Swissquote Group. However, Jungfraubahn Holding AG is 2.84 times less risky than Swissquote Group. It trades about 0.49 of its potential returns per unit of risk. Swissquote Group Holding is currently generating about -0.06 per unit of risk. If you would invest  22,950  in Jungfraubahn Holding AG on August 20, 2025 and sell it today you would earn a total of  1,600  from holding Jungfraubahn Holding AG or generate 6.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Jungfraubahn Holding AG  vs.  Swissquote Group Holding

 Performance 
       Timeline  
Jungfraubahn Holding 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jungfraubahn Holding AG are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jungfraubahn Holding showed solid returns over the last few months and may actually be approaching a breakup point.
Swissquote Group Holding 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Swissquote Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Jungfraubahn Holding and Swissquote Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jungfraubahn Holding and Swissquote Group

The main advantage of trading using opposite Jungfraubahn Holding and Swissquote Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jungfraubahn Holding position performs unexpectedly, Swissquote Group 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 Swissquote Group will offset losses from the drop in Swissquote Group's long position.
The idea behind Jungfraubahn Holding AG and Swissquote Group Holding 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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