Correlation Between Carlo Gavazzi and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Carlo Gavazzi 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 Carlo Gavazzi and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlo Gavazzi Holding and Banque Cantonale, you can compare the effects of market volatilities on Carlo Gavazzi 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 Carlo Gavazzi with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlo Gavazzi and Banque Cantonale.
Diversification Opportunities for Carlo Gavazzi and Banque Cantonale
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlo and Banque is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Carlo Gavazzi Holding and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Carlo Gavazzi 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 Carlo Gavazzi Holding 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 Carlo Gavazzi i.e., Carlo Gavazzi and Banque Cantonale go up and down completely randomly.
Pair Corralation between Carlo Gavazzi and Banque Cantonale
Assuming the 90 days trading horizon Carlo Gavazzi Holding is expected to under-perform the Banque Cantonale. In addition to that, Carlo Gavazzi is 2.82 times more volatile than Banque Cantonale. It trades about -0.1 of its total potential returns per unit of risk. Banque Cantonale is currently generating about -0.06 per unit of volatility. If you would invest 9,440 in Banque Cantonale on August 31, 2024 and sell it today you would lose (695.00) from holding Banque Cantonale or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Carlo Gavazzi Holding vs. Banque Cantonale
Performance |
| Timeline |
| Carlo Gavazzi Holding |
| Banque Cantonale |
Carlo Gavazzi and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlo Gavazzi and Banque Cantonale
The main advantage of trading using opposite Carlo Gavazzi and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlo Gavazzi 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.| Carlo Gavazzi vs. Inficon Holding | Carlo Gavazzi vs. Belimo Holding | Carlo Gavazzi vs. Interroll Holding AG | Carlo Gavazzi vs. Comet Holding AG |
| Banque Cantonale vs. Helvetia Holding AG | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Swisscom AG | Banque Cantonale vs. Swiss Life Holding |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |