Correlation Between Cembra Money and Leonteq AG
Can any of the company-specific risk be diversified away by investing in both Cembra Money and Leonteq AG 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 Leonteq AG 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 Leonteq AG, you can compare the effects of market volatilities on Cembra Money and Leonteq AG 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 Leonteq AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Leonteq AG.
Diversification Opportunities for Cembra Money and Leonteq AG
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cembra and Leonteq is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Leonteq AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leonteq AG 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 Leonteq AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leonteq AG has no effect on the direction of Cembra Money i.e., Cembra Money and Leonteq AG go up and down completely randomly.
Pair Corralation between Cembra Money and Leonteq AG
Assuming the 90 days trading horizon Cembra Money Bank is expected to generate 0.54 times more return on investment than Leonteq AG. However, Cembra Money Bank is 1.86 times less risky than Leonteq AG. It trades about 0.11 of its potential returns per unit of risk. Leonteq AG is currently generating about -0.09 per unit of risk. If you would invest 6,030 in Cembra Money Bank on September 1, 2024 and sell it today you would earn a total of 2,080 from holding Cembra Money Bank or generate 34.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cembra Money Bank vs. Leonteq AG
Performance |
| Timeline |
| Cembra Money Bank |
| Leonteq AG |
Cembra Money and Leonteq AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and Leonteq AG
The main advantage of trading using opposite Cembra Money and Leonteq AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money position performs unexpectedly, Leonteq AG 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 Leonteq AG will offset losses from the drop in Leonteq AG'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 |
| Leonteq AG vs. Cembra Money Bank | Leonteq AG vs. OC Oerlikon Corp | Leonteq AG vs. Helvetia Holding AG | Leonteq AG vs. mobilezone 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |