Correlation Between Banque Cantonale and St Galler
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and St Galler 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 St Galler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale and St Galler Kantonalbank, you can compare the effects of market volatilities on Banque Cantonale and St Galler 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 St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and St Galler.
Diversification Opportunities for Banque Cantonale and St Galler
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Banque and SGKN is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank 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 St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and St Galler go up and down completely randomly.
Pair Corralation between Banque Cantonale and St Galler
Assuming the 90 days trading horizon Banque Cantonale is expected to generate 1.24 times more return on investment than St Galler. However, Banque Cantonale is 1.24 times more volatile than St Galler Kantonalbank. It trades about 0.03 of its potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.03 per unit of risk. If you would invest 7,949 in Banque Cantonale on August 24, 2024 and sell it today you would earn a total of 856.00 from holding Banque Cantonale or generate 10.77% 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. St Galler Kantonalbank
Performance |
| Timeline |
| Banque Cantonale |
| St Galler Kantonalbank |
Banque Cantonale and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and St Galler
The main advantage of trading using opposite Banque Cantonale and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| Banque Cantonale vs. Santhera Pharmaceuticals Holding | Banque Cantonale vs. Newron Pharmaceuticals SpA | Banque Cantonale vs. Basilea Pharmaceutica AG | Banque Cantonale vs. Evolva Holding SA |
| St Galler vs. Banque Cantonale | St Galler vs. Luzerner Kantonalbank AG | St Galler vs. Berner Kantonalbank AG | St Galler vs. Helvetia Holding 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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