Correlation Between CS Real and Swissinvest Real
Can any of the company-specific risk be diversified away by investing in both CS Real and Swissinvest Real 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 CS Real and Swissinvest Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CS Real Estate and Swissinvest Real Estate, you can compare the effects of market volatilities on CS Real and Swissinvest Real 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 CS Real with a short position of Swissinvest Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of CS Real and Swissinvest Real.
Diversification Opportunities for CS Real and Swissinvest Real
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSLP and Swissinvest is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CS Real Estate and Swissinvest Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissinvest Real Estate and CS Real 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 CS Real Estate are associated (or correlated) with Swissinvest Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissinvest Real Estate has no effect on the direction of CS Real i.e., CS Real and Swissinvest Real go up and down completely randomly.
Pair Corralation between CS Real and Swissinvest Real
Assuming the 90 days trading horizon CS Real Estate is expected to generate 1.09 times more return on investment than Swissinvest Real. However, CS Real is 1.09 times more volatile than Swissinvest Real Estate. It trades about 0.08 of its potential returns per unit of risk. Swissinvest Real Estate is currently generating about 0.04 per unit of risk. If you would invest 14,300 in CS Real Estate on September 19, 2024 and sell it today you would earn a total of 1,450 from holding CS Real Estate or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CS Real Estate vs. Swissinvest Real Estate
Performance |
| Timeline |
| CS Real Estate |
| Swissinvest Real Estate |
CS Real and Swissinvest Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CS Real and Swissinvest Real
The main advantage of trading using opposite CS Real and Swissinvest Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CS Real position performs unexpectedly, Swissinvest Real 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 Swissinvest Real will offset losses from the drop in Swissinvest Real's long position.| CS Real vs. SPDR Dow Jones | CS Real vs. Baloise Holding AG | CS Real vs. SPDR FTSE UK | CS Real vs. Banque Cantonale du |
| Swissinvest Real vs. SPDR Dow Jones | Swissinvest Real vs. Baloise Holding AG | Swissinvest Real vs. Banque Cantonale du | Swissinvest Real vs. 21Shares Polkadot ETP |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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