Correlation Between Liechtensteinische and Schweizerische Nationalbank
Can any of the company-specific risk be diversified away by investing in both Liechtensteinische and Schweizerische Nationalbank 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 Liechtensteinische and Schweizerische Nationalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liechtensteinische Landesbank AG and Schweizerische Nationalbank, you can compare the effects of market volatilities on Liechtensteinische and Schweizerische Nationalbank 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 Liechtensteinische with a short position of Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liechtensteinische and Schweizerische Nationalbank.
Diversification Opportunities for Liechtensteinische and Schweizerische Nationalbank
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Liechtensteinische and Schweizerische is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Liechtensteinische Landesbank and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank and Liechtensteinische 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 Liechtensteinische Landesbank AG are associated (or correlated) with Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Liechtensteinische i.e., Liechtensteinische and Schweizerische Nationalbank go up and down completely randomly.
Pair Corralation between Liechtensteinische and Schweizerische Nationalbank
Assuming the 90 days trading horizon Liechtensteinische Landesbank AG is expected to generate 1.01 times more return on investment than Schweizerische Nationalbank. However, Liechtensteinische is 1.01 times more volatile than Schweizerische Nationalbank. It trades about -0.08 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about -0.24 per unit of risk. If you would invest 7,650 in Liechtensteinische Landesbank AG on January 5, 2025 and sell it today you would lose (190.00) from holding Liechtensteinische Landesbank AG or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Liechtensteinische Landesbank vs. Schweizerische Nationalbank
Performance |
| Timeline |
| Liechtensteinische |
| Schweizerische Nationalbank |
Liechtensteinische and Schweizerische Nationalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liechtensteinische and Schweizerische Nationalbank
The main advantage of trading using opposite Liechtensteinische and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liechtensteinische position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank's long position.| Liechtensteinische vs. VP Bank AG | Liechtensteinische vs. Valiant Holding AG | Liechtensteinische vs. Glarner Kantonalbank | Liechtensteinische vs. Berner Kantonalbank AG |
| Schweizerische Nationalbank vs. Helvetia Holding AG | Schweizerische Nationalbank vs. Banque Cantonale | Schweizerische Nationalbank vs. Cembra Money Bank | Schweizerische Nationalbank vs. Vontobel 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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