Correlation Between Berner Kantonalbank and Komax Holding
Can any of the company-specific risk be diversified away by investing in both Berner Kantonalbank and Komax 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 Berner Kantonalbank and Komax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berner Kantonalbank AG and Komax Holding AG, you can compare the effects of market volatilities on Berner Kantonalbank and Komax 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 Berner Kantonalbank with a short position of Komax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berner Kantonalbank and Komax Holding.
Diversification Opportunities for Berner Kantonalbank and Komax Holding
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berner and Komax is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Berner Kantonalbank AG and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding AG and Berner Kantonalbank 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 Berner Kantonalbank AG are associated (or correlated) with Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of Berner Kantonalbank i.e., Berner Kantonalbank and Komax Holding go up and down completely randomly.
Pair Corralation between Berner Kantonalbank and Komax Holding
Assuming the 90 days trading horizon Berner Kantonalbank AG is expected to generate 0.29 times more return on investment than Komax Holding. However, Berner Kantonalbank AG is 3.49 times less risky than Komax Holding. It trades about -0.08 of its potential returns per unit of risk. Komax Holding AG is currently generating about -0.09 per unit of risk. If you would invest 23,400 in Berner Kantonalbank AG on August 28, 2024 and sell it today you would lose (200.00) from holding Berner Kantonalbank AG or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berner Kantonalbank AG vs. Komax Holding AG
Performance |
| Timeline |
| Berner Kantonalbank |
| Komax Holding AG |
Berner Kantonalbank and Komax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berner Kantonalbank and Komax Holding
The main advantage of trading using opposite Berner Kantonalbank and Komax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berner Kantonalbank position performs unexpectedly, Komax 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 Komax Holding will offset losses from the drop in Komax Holding's long position.| Berner Kantonalbank vs. Swissquote Group Holding | Berner Kantonalbank vs. Banque Cantonale | Berner Kantonalbank vs. Barry Callebaut AG | Berner Kantonalbank vs. Vontobel Holding |
| Komax Holding vs. Helvetia Holding AG | Komax Holding vs. Swiss Life Holding | Komax Holding vs. VAT Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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