Correlation Between Hypothekarbank Lenzburg and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hypothekarbank Lenzburg AG and Banque Cantonale du, you can compare the effects of market volatilities on Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hypothekarbank Lenzburg and Banque Cantonale.
Diversification Opportunities for Hypothekarbank Lenzburg and Banque Cantonale
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hypothekarbank and Banque is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hypothekarbank Lenzburg AG and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg AG 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 Hypothekarbank Lenzburg i.e., Hypothekarbank Lenzburg and Banque Cantonale go up and down completely randomly.
Pair Corralation between Hypothekarbank Lenzburg and Banque Cantonale
Assuming the 90 days trading horizon Hypothekarbank Lenzburg is expected to generate 3.21 times less return on investment than Banque Cantonale. But when comparing it to its historical volatility, Hypothekarbank Lenzburg AG is 1.9 times less risky than Banque Cantonale. It trades about 0.11 of its potential returns per unit of risk. Banque Cantonale du is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 11,000 in Banque Cantonale du on November 4, 2024 and sell it today you would earn a total of 350.00 from holding Banque Cantonale du or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hypothekarbank Lenzburg AG vs. Banque Cantonale du
Performance |
| Timeline |
| Hypothekarbank Lenzburg |
| Banque Cantonale |
Hypothekarbank Lenzburg and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hypothekarbank Lenzburg and Banque Cantonale
The main advantage of trading using opposite Hypothekarbank Lenzburg and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hypothekarbank Lenzburg 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.| Hypothekarbank Lenzburg vs. Luzerner Kantonalbank AG | Hypothekarbank Lenzburg vs. Graubuendner Kantonalbank | Hypothekarbank Lenzburg vs. CPH Chemie und | Hypothekarbank Lenzburg vs. Berner Kantonalbank AG |
| Banque Cantonale vs. Glarner Kantonalbank | Banque Cantonale vs. Adval Tech Holding | Banque Cantonale vs. Softwareone Holding | 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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