Correlation Between HIAG Immobilien and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both HIAG Immobilien 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 HIAG Immobilien and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIAG Immobilien Holding and Banque Cantonale du, you can compare the effects of market volatilities on HIAG Immobilien 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 HIAG Immobilien with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIAG Immobilien and Banque Cantonale.
Diversification Opportunities for HIAG Immobilien and Banque Cantonale
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HIAG and Banque is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding HIAG Immobilien Holding and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and HIAG Immobilien 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 HIAG Immobilien 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 HIAG Immobilien i.e., HIAG Immobilien and Banque Cantonale go up and down completely randomly.
Pair Corralation between HIAG Immobilien and Banque Cantonale
Assuming the 90 days trading horizon HIAG Immobilien Holding is expected to generate 1.3 times more return on investment than Banque Cantonale. However, HIAG Immobilien is 1.3 times more volatile than Banque Cantonale du. It trades about 0.16 of its potential returns per unit of risk. Banque Cantonale du is currently generating about 0.18 per unit of risk. If you would invest 8,860 in HIAG Immobilien Holding on December 1, 2024 and sell it today you would earn a total of 280.00 from holding HIAG Immobilien Holding or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIAG Immobilien Holding vs. Banque Cantonale du
Performance |
| Timeline |
| HIAG Immobilien Holding |
| Banque Cantonale |
HIAG Immobilien and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIAG Immobilien and Banque Cantonale
The main advantage of trading using opposite HIAG Immobilien and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIAG Immobilien 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.| HIAG Immobilien vs. Allreal Holding | HIAG Immobilien vs. Mobimo Hldg | HIAG Immobilien vs. Swiss Prime Site | HIAG Immobilien vs. PSP Swiss Property |
| Banque Cantonale vs. Hypothekarbank Lenzburg AG | Banque Cantonale vs. St Galler Kantonalbank | Banque Cantonale vs. Thurgauer 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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