Correlation Between Implenia and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Implenia 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 Implenia and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Implenia AG and Banque Cantonale, you can compare the effects of market volatilities on Implenia 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 Implenia with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Implenia and Banque Cantonale.
Diversification Opportunities for Implenia and Banque Cantonale
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Implenia and Banque is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Implenia AG and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Implenia 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 Implenia 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 Implenia i.e., Implenia and Banque Cantonale go up and down completely randomly.
Pair Corralation between Implenia and Banque Cantonale
Assuming the 90 days trading horizon Implenia AG is expected to generate 2.17 times more return on investment than Banque Cantonale. However, Implenia is 2.17 times more volatile than Banque Cantonale. It trades about 0.22 of its potential returns per unit of risk. Banque Cantonale is currently generating about 0.36 per unit of risk. If you would invest 3,145 in Implenia AG on November 3, 2024 and sell it today you would earn a total of 340.00 from holding Implenia AG or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Implenia AG vs. Banque Cantonale
Performance |
| Timeline |
| Implenia AG |
| Banque Cantonale |
Implenia and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Implenia and Banque Cantonale
The main advantage of trading using opposite Implenia and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Implenia 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.| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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