Correlation Between Berner Kantonalbank and Starrag Group
Can any of the company-specific risk be diversified away by investing in both Berner Kantonalbank and Starrag 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 Starrag 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 Starrag Group Holding, you can compare the effects of market volatilities on Berner Kantonalbank and Starrag 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 Starrag Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berner Kantonalbank and Starrag Group.
Diversification Opportunities for Berner Kantonalbank and Starrag Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Berner and Starrag is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Berner Kantonalbank AG and Starrag Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starrag 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 Starrag Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starrag Group Holding has no effect on the direction of Berner Kantonalbank i.e., Berner Kantonalbank and Starrag Group go up and down completely randomly.
Pair Corralation between Berner Kantonalbank and Starrag Group
Assuming the 90 days trading horizon Berner Kantonalbank AG is expected to generate 0.27 times more return on investment than Starrag Group. However, Berner Kantonalbank AG is 3.76 times less risky than Starrag Group. It trades about 0.04 of its potential returns per unit of risk. Starrag Group Holding is currently generating about -0.01 per unit of risk. If you would invest 21,158 in Berner Kantonalbank AG on August 24, 2024 and sell it today you would earn a total of 2,142 from holding Berner Kantonalbank AG or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.69% |
| Values | Daily Returns |
Berner Kantonalbank AG vs. Starrag Group Holding
Performance |
| Timeline |
| Berner Kantonalbank |
| Starrag Group Holding |
Berner Kantonalbank and Starrag Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berner Kantonalbank and Starrag Group
The main advantage of trading using opposite Berner Kantonalbank and Starrag Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berner Kantonalbank position performs unexpectedly, Starrag 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 Starrag Group will offset losses from the drop in Starrag Group'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 |
| Starrag Group vs. Carlo Gavazzi Holding | Starrag Group vs. Mikron Holding AG | Starrag Group vs. Valartis 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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