Correlation Between Bellevue Group and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Bellevue Group 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 Bellevue Group and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellevue Group AG and Banque Cantonale, you can compare the effects of market volatilities on Bellevue Group 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 Bellevue Group with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Group and Banque Cantonale.
Diversification Opportunities for Bellevue Group and Banque Cantonale
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bellevue and Banque is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Group AG and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Bellevue Group 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 Bellevue Group AG 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 Bellevue Group i.e., Bellevue Group and Banque Cantonale go up and down completely randomly.
Pair Corralation between Bellevue Group and Banque Cantonale
Assuming the 90 days trading horizon Bellevue Group AG is expected to under-perform the Banque Cantonale. In addition to that, Bellevue Group is 1.85 times more volatile than Banque Cantonale. It trades about -0.17 of its total potential returns per unit of risk. Banque Cantonale is currently generating about -0.06 per unit of volatility. If you would invest 9,440 in Banque Cantonale on August 31, 2024 and sell it today you would lose (695.00) from holding Banque Cantonale or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Group AG vs. Banque Cantonale
Performance |
| Timeline |
| Bellevue Group AG |
| Banque Cantonale |
Bellevue Group and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Group and Banque Cantonale
The main advantage of trading using opposite Bellevue Group and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Group 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.| Bellevue Group vs. BB Biotech AG | Bellevue Group vs. Leonteq AG | Bellevue Group vs. Helvetia Holding AG | Bellevue Group vs. EFG International AG |
| Banque Cantonale vs. Helvetia Holding AG | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Swisscom AG | Banque Cantonale vs. Swiss Life 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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