Correlation Between Cembra Money and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Cembra Money 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 Cembra Money and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and Banque Cantonale Du, you can compare the effects of market volatilities on Cembra Money 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 Cembra Money with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Banque Cantonale.
Diversification Opportunities for Cembra Money and Banque Cantonale
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cembra and Banque is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Banque Cantonale Du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Cembra Money 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 Cembra Money Bank 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 Cembra Money i.e., Cembra Money and Banque Cantonale go up and down completely randomly.
Pair Corralation between Cembra Money and Banque Cantonale
Assuming the 90 days trading horizon Cembra Money Bank is expected to generate 0.52 times more return on investment than Banque Cantonale. However, Cembra Money Bank is 1.92 times less risky than Banque Cantonale. It trades about 0.05 of its potential returns per unit of risk. Banque Cantonale Du is currently generating about 0.01 per unit of risk. If you would invest 6,640 in Cembra Money Bank on August 31, 2024 and sell it today you would earn a total of 1,470 from holding Cembra Money Bank or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.04% |
| Values | Daily Returns |
Cembra Money Bank vs. Banque Cantonale Du
Performance |
| Timeline |
| Cembra Money Bank |
| Banque Cantonale |
Cembra Money and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and Banque Cantonale
The main advantage of trading using opposite Cembra Money and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money 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.| Cembra Money vs. Helvetia Holding AG | Cembra Money vs. Swiss Life Holding | Cembra Money vs. Baloise Holding AG | Cembra Money vs. Logitech International SA |
| Banque Cantonale vs. Banque Cantonale de | Banque Cantonale vs. Berner Kantonalbank AG | Banque Cantonale vs. Basler Kantonalbank | Banque Cantonale vs. Luzerner Kantonalbank 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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