Correlation Between Banque Cantonale and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Chocoladefabriken 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 Chocoladefabriken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale and Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on Banque Cantonale and Chocoladefabriken 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 Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Chocoladefabriken.
Diversification Opportunities for Banque Cantonale and Chocoladefabriken
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banque and Chocoladefabriken is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt 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 Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Chocoladefabriken go up and down completely randomly.
Pair Corralation between Banque Cantonale and Chocoladefabriken
Assuming the 90 days trading horizon Banque Cantonale is expected to generate 0.47 times more return on investment than Chocoladefabriken. However, Banque Cantonale is 2.14 times less risky than Chocoladefabriken. It trades about 0.59 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.03 per unit of risk. If you would invest 8,325 in Banque Cantonale on October 25, 2024 and sell it today you would earn a total of 620.00 from holding Banque Cantonale or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale vs. Chocoladefabriken Lindt Spruen
Performance |
| Timeline |
| Banque Cantonale |
| Chocoladefabriken Lindt |
Banque Cantonale and Chocoladefabriken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Chocoladefabriken
The main advantage of trading using opposite Banque Cantonale and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Chocoladefabriken 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 Chocoladefabriken will offset losses from the drop in Chocoladefabriken'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 |
| Chocoladefabriken vs. Chocoladefabriken Lindt Spruengli | Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. Givaudan SA | Chocoladefabriken vs. Geberit AG |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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