Correlation Between Basler Kantonalbank and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Basler Kantonalbank and Banque Cantonale 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 Basler Kantonalbank and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Basler Kantonalbank and Banque Cantonale, you can compare the effects of market volatilities on Basler Kantonalbank and Banque Cantonale 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 Basler Kantonalbank with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basler Kantonalbank and Banque Cantonale.
Diversification Opportunities for Basler Kantonalbank and Banque Cantonale
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Basler and Banque is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Basler Kantonalbank and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Basler 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 Basler Kantonalbank are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Basler Kantonalbank i.e., Basler Kantonalbank and Banque Cantonale go up and down completely randomly.
Pair Corralation between Basler Kantonalbank and Banque Cantonale
Assuming the 90 days trading horizon Basler Kantonalbank is expected to generate 0.81 times more return on investment than Banque Cantonale. However, Basler Kantonalbank is 1.23 times less risky than Banque Cantonale. It trades about 0.04 of its potential returns per unit of risk. Banque Cantonale is currently generating about 0.02 per unit of risk. If you would invest 5,576 in Basler Kantonalbank on August 25, 2024 and sell it today you would earn a total of 1,064 from holding Basler Kantonalbank or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Basler Kantonalbank vs. Banque Cantonale
Performance |
| Timeline |
| Basler Kantonalbank |
| Banque Cantonale |
Basler Kantonalbank and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basler Kantonalbank and Banque Cantonale
The main advantage of trading using opposite Basler Kantonalbank and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basler Kantonalbank position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Basler Kantonalbank vs. Swissquote Group Holding | Basler Kantonalbank vs. Banque Cantonale | Basler Kantonalbank vs. Barry Callebaut AG | Basler Kantonalbank vs. Vontobel Holding |
| Banque Cantonale vs. Santhera Pharmaceuticals Holding | Banque Cantonale vs. Newron Pharmaceuticals SpA | Banque Cantonale vs. Basilea Pharmaceutica AG | Banque Cantonale vs. Evolva Holding SA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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