Correlation Between Berner Kantonalbank and Swissquote Group
Can any of the company-specific risk be diversified away by investing in both Berner Kantonalbank and Swissquote Group 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 Swissquote Group 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 Swissquote Group Holding, you can compare the effects of market volatilities on Berner Kantonalbank and Swissquote Group 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 Swissquote Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berner Kantonalbank and Swissquote Group.
Diversification Opportunities for Berner Kantonalbank and Swissquote Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Berner and Swissquote is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Berner Kantonalbank AG and Swissquote Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissquote Group Holding 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 Swissquote Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissquote Group Holding has no effect on the direction of Berner Kantonalbank i.e., Berner Kantonalbank and Swissquote Group go up and down completely randomly.
Pair Corralation between Berner Kantonalbank and Swissquote Group
Assuming the 90 days trading horizon Berner Kantonalbank is expected to generate 7.99 times less return on investment than Swissquote Group. But when comparing it to its historical volatility, Berner Kantonalbank AG is 2.87 times less risky than Swissquote Group. It trades about 0.04 of its potential returns per unit of risk. Swissquote Group Holding is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 12,146 in Swissquote Group Holding on August 28, 2024 and sell it today you would earn a total of 21,354 from holding Swissquote Group Holding or generate 175.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berner Kantonalbank AG vs. Swissquote Group Holding
Performance |
| Timeline |
| Berner Kantonalbank |
| Swissquote Group Holding |
Berner Kantonalbank and Swissquote Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berner Kantonalbank and Swissquote Group
The main advantage of trading using opposite Berner Kantonalbank and Swissquote Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berner Kantonalbank position performs unexpectedly, Swissquote Group 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 Swissquote Group will offset losses from the drop in Swissquote Group's long position.| Berner Kantonalbank vs. Banque Cantonale | Berner Kantonalbank vs. Luzerner Kantonalbank AG | Berner Kantonalbank vs. St Galler Kantonalbank | Berner Kantonalbank vs. Basler Kantonalbank |
| Swissquote Group vs. Carlo Gavazzi Holding | Swissquote Group vs. Bellevue Group AG | Swissquote Group vs. Bucher Industries AG | Swissquote Group vs. Hubersuhner 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |