Correlation Between LG Clean and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both LG Clean 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 LG Clean and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Clean Water and Banque Cantonale du, you can compare the effects of market volatilities on LG Clean 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 LG Clean with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Clean and Banque Cantonale.
Diversification Opportunities for LG Clean and Banque Cantonale
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GLUG and Banque is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding LG Clean Water and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and LG Clean 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 LG Clean Water 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 LG Clean i.e., LG Clean and Banque Cantonale go up and down completely randomly.
Pair Corralation between LG Clean and Banque Cantonale
Assuming the 90 days trading horizon LG Clean Water is expected to generate 1.54 times more return on investment than Banque Cantonale. However, LG Clean is 1.54 times more volatile than Banque Cantonale du. It trades about 0.03 of its potential returns per unit of risk. Banque Cantonale du is currently generating about 0.04 per unit of risk. If you would invest 1,367 in LG Clean Water on October 13, 2024 and sell it today you would earn a total of 200.00 from holding LG Clean Water or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
LG Clean Water vs. Banque Cantonale du
Performance |
| Timeline |
| LG Clean Water |
| Banque Cantonale |
LG Clean and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Clean and Banque Cantonale
The main advantage of trading using opposite LG Clean and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Clean 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.| LG Clean vs. Vanguard FTSE Emerging | LG Clean vs. UBS ETF MSCI | LG Clean vs. VanEck Solana ETN | LG Clean vs. iShares Corp Bond |
| Banque Cantonale vs. Adval Tech Holding | Banque Cantonale vs. Glarner Kantonalbank | Banque Cantonale vs. Basler Kantonalbank | Banque Cantonale vs. Schweizerische Nationalbank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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