Correlation Between Vaudoise Assurances and HBM Healthcare
Can any of the company-specific risk be diversified away by investing in both Vaudoise Assurances and HBM Healthcare 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 Vaudoise Assurances and HBM Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaudoise Assurances Holding and HBM Healthcare Investments, you can compare the effects of market volatilities on Vaudoise Assurances and HBM Healthcare 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 Vaudoise Assurances with a short position of HBM Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaudoise Assurances and HBM Healthcare.
Diversification Opportunities for Vaudoise Assurances and HBM Healthcare
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vaudoise and HBM is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Vaudoise Assurances Holding and HBM Healthcare Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HBM Healthcare Inves and Vaudoise Assurances 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 Vaudoise Assurances Holding are associated (or correlated) with HBM Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HBM Healthcare Inves has no effect on the direction of Vaudoise Assurances i.e., Vaudoise Assurances and HBM Healthcare go up and down completely randomly.
Pair Corralation between Vaudoise Assurances and HBM Healthcare
Assuming the 90 days trading horizon Vaudoise Assurances is expected to generate 2.32 times less return on investment than HBM Healthcare. But when comparing it to its historical volatility, Vaudoise Assurances Holding is 1.4 times less risky than HBM Healthcare. It trades about 0.18 of its potential returns per unit of risk. HBM Healthcare Investments is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 17,700 in HBM Healthcare Investments on August 26, 2025 and sell it today you would earn a total of 2,750 from holding HBM Healthcare Investments or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaudoise Assurances Holding vs. HBM Healthcare Investments
Performance |
| Timeline |
| Vaudoise Assurances |
| HBM Healthcare Inves |
Vaudoise Assurances and HBM Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaudoise Assurances and HBM Healthcare
The main advantage of trading using opposite Vaudoise Assurances and HBM Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaudoise Assurances position performs unexpectedly, HBM Healthcare 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 HBM Healthcare will offset losses from the drop in HBM Healthcare's long position.| Vaudoise Assurances vs. Banque Cantonale de | Vaudoise Assurances vs. Banque Cantonale du | Vaudoise Assurances vs. Valiant Holding AG | Vaudoise Assurances vs. HBM Healthcare Investments |
| HBM Healthcare vs. Idorsia | HBM Healthcare vs. Newron Pharmaceuticals SpA | HBM Healthcare vs. Molecular Partners AG | HBM Healthcare vs. Relief Therapeutics Holding |
Check out your portfolio center.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 CEOs Directory module to screen CEOs from public companies around the world.
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