Correlation Between Banque Cantonale and Burkhalter Holding
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Burkhalter 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 Banque Cantonale and Burkhalter Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale and Burkhalter Holding AG, you can compare the effects of market volatilities on Banque Cantonale and Burkhalter 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 Banque Cantonale with a short position of Burkhalter Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Burkhalter Holding.
Diversification Opportunities for Banque Cantonale and Burkhalter Holding
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Banque and Burkhalter is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale and Burkhalter Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burkhalter Holding and Banque Cantonale 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 Banque Cantonale are associated (or correlated) with Burkhalter Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burkhalter Holding has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Burkhalter Holding go up and down completely randomly.
Pair Corralation between Banque Cantonale and Burkhalter Holding
Assuming the 90 days trading horizon Banque Cantonale is expected to generate 1.88 times less return on investment than Burkhalter Holding. In addition to that, Banque Cantonale is 1.04 times more volatile than Burkhalter Holding AG. It trades about 0.02 of its total potential returns per unit of risk. Burkhalter Holding AG is currently generating about 0.04 per unit of volatility. If you would invest 8,920 in Burkhalter Holding AG on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Burkhalter Holding AG or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale vs. Burkhalter Holding AG
Performance |
| Timeline |
| Banque Cantonale |
| Burkhalter Holding |
Banque Cantonale and Burkhalter Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Burkhalter Holding
The main advantage of trading using opposite Banque Cantonale and Burkhalter Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Burkhalter 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 Burkhalter Holding will offset losses from the drop in Burkhalter Holding's long position.| Banque Cantonale vs. Helvetia Holding AG | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Swisscom AG | Banque Cantonale vs. Swiss Life Holding |
| Burkhalter Holding vs. mobilezone ag | Burkhalter Holding vs. Cembra Money Bank | Burkhalter Holding vs. OC Oerlikon Corp | Burkhalter Holding vs. Banque Cantonale |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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