Correlation Between Banque Cantonale and Swiss Prime
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Swiss Prime 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 Swiss Prime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale and Swiss Prime Site, you can compare the effects of market volatilities on Banque Cantonale and Swiss Prime 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 Swiss Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Swiss Prime.
Diversification Opportunities for Banque Cantonale and Swiss Prime
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Banque and Swiss is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale and Swiss Prime Site in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Prime Site 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 Swiss Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Prime Site has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Swiss Prime go up and down completely randomly.
Pair Corralation between Banque Cantonale and Swiss Prime
Assuming the 90 days trading horizon Banque Cantonale is expected to under-perform the Swiss Prime. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale is 1.05 times less risky than Swiss Prime. The stock trades about -0.05 of its potential returns per unit of risk. The Swiss Prime Site is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,510 in Swiss Prime Site on August 25, 2024 and sell it today you would earn a total of 75.00 from holding Swiss Prime Site or generate 0.79% 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. Swiss Prime Site
Performance |
| Timeline |
| Banque Cantonale |
| Swiss Prime Site |
Banque Cantonale and Swiss Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Swiss Prime
The main advantage of trading using opposite Banque Cantonale and Swiss Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Swiss Prime 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 Swiss Prime will offset losses from the drop in Swiss Prime'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 |
| Swiss Prime vs. PSP Swiss Property | Swiss Prime vs. Allreal Holding | Swiss Prime vs. Helvetia Holding AG | Swiss Prime vs. Baloise 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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