Correlation Between Graubuendner Kantonalbank and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Graubuendner Kantonalbank 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 Graubuendner Kantonalbank and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graubuendner Kantonalbank and Banque Cantonale Du, you can compare the effects of market volatilities on Graubuendner Kantonalbank 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 Graubuendner Kantonalbank with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graubuendner Kantonalbank and Banque Cantonale.
Diversification Opportunities for Graubuendner Kantonalbank and Banque Cantonale
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Graubuendner and Banque is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Graubuendner Kantonalbank and Banque Cantonale Du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Graubuendner Kantonalbank 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 Graubuendner Kantonalbank 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 Graubuendner Kantonalbank i.e., Graubuendner Kantonalbank and Banque Cantonale go up and down completely randomly.
Pair Corralation between Graubuendner Kantonalbank and Banque Cantonale
Assuming the 90 days trading horizon Graubuendner Kantonalbank is expected to generate 2.42 times less return on investment than Banque Cantonale. But when comparing it to its historical volatility, Graubuendner Kantonalbank is 2.64 times less risky than Banque Cantonale. It trades about 0.02 of its potential returns per unit of risk. Banque Cantonale Du is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,017 in Banque Cantonale Du on August 31, 2024 and sell it today you would earn a total of 133.00 from holding Banque Cantonale Du or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.27% |
| Values | Daily Returns |
Graubuendner Kantonalbank vs. Banque Cantonale Du
Performance |
| Timeline |
| Graubuendner Kantonalbank |
| Banque Cantonale |
Graubuendner Kantonalbank and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graubuendner Kantonalbank and Banque Cantonale
The main advantage of trading using opposite Graubuendner Kantonalbank and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graubuendner Kantonalbank 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.| Graubuendner Kantonalbank vs. Swissquote Group Holding | Graubuendner Kantonalbank vs. Banque Cantonale | Graubuendner Kantonalbank vs. Barry Callebaut AG | Graubuendner Kantonalbank vs. Vontobel Holding |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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