Correlation Between Allreal Holding and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Allreal Holding and Banque Cantonale 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 Allreal Holding and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allreal Holding and Banque Cantonale, you can compare the effects of market volatilities on Allreal Holding and Banque Cantonale 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 Allreal Holding with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allreal Holding and Banque Cantonale.
Diversification Opportunities for Allreal Holding and Banque Cantonale
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allreal and Banque is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Allreal Holding and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Allreal 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 Allreal Holding are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Allreal Holding i.e., Allreal Holding and Banque Cantonale go up and down completely randomly.
Pair Corralation between Allreal Holding and Banque Cantonale
Assuming the 90 days trading horizon Allreal Holding is expected to generate 0.75 times more return on investment than Banque Cantonale. However, Allreal Holding is 1.34 times less risky than Banque Cantonale. It trades about 0.11 of its potential returns per unit of risk. Banque Cantonale is currently generating about -0.07 per unit of risk. If you would invest 15,740 in Allreal Holding on August 29, 2024 and sell it today you would earn a total of 300.00 from holding Allreal Holding or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allreal Holding vs. Banque Cantonale
Performance |
| Timeline |
| Allreal Holding |
| Banque Cantonale |
Allreal Holding and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allreal Holding and Banque Cantonale
The main advantage of trading using opposite Allreal Holding and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allreal Holding position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Allreal Holding vs. PSP Swiss Property | Allreal Holding vs. Swiss Prime Site | Allreal Holding vs. Mobimo Hldg | Allreal Holding vs. Helvetia Holding AG |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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