Correlation Between Metall Zug and Basellandschaftliche
Can any of the company-specific risk be diversified away by investing in both Metall Zug and Basellandschaftliche 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 Metall Zug and Basellandschaftliche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metall Zug AG and Basellandschaftliche Kantonalbank, you can compare the effects of market volatilities on Metall Zug and Basellandschaftliche 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 Metall Zug with a short position of Basellandschaftliche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metall Zug and Basellandschaftliche.
Diversification Opportunities for Metall Zug and Basellandschaftliche
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metall and Basellandschaftliche is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Metall Zug AG and Basellandschaftliche Kantonalb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basellandschaftliche and Metall Zug 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 Metall Zug AG are associated (or correlated) with Basellandschaftliche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basellandschaftliche has no effect on the direction of Metall Zug i.e., Metall Zug and Basellandschaftliche go up and down completely randomly.
Pair Corralation between Metall Zug and Basellandschaftliche
Assuming the 90 days trading horizon Metall Zug AG is expected to under-perform the Basellandschaftliche. In addition to that, Metall Zug is 3.4 times more volatile than Basellandschaftliche Kantonalbank. It trades about -0.09 of its total potential returns per unit of risk. Basellandschaftliche Kantonalbank is currently generating about 0.0 per unit of volatility. If you would invest 84,800 in Basellandschaftliche Kantonalbank on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Basellandschaftliche Kantonalbank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metall Zug AG vs. Basellandschaftliche Kantonalb
Performance |
| Timeline |
| Metall Zug AG |
| Basellandschaftliche |
Metall Zug and Basellandschaftliche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metall Zug and Basellandschaftliche
The main advantage of trading using opposite Metall Zug and Basellandschaftliche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metall Zug position performs unexpectedly, Basellandschaftliche 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 Basellandschaftliche will offset losses from the drop in Basellandschaftliche's long position.| Metall Zug vs. Bucher Industries AG | Metall Zug vs. Burckhardt Compression | Metall Zug vs. Also Holding AG | Metall Zug vs. Emmi AG |
| Basellandschaftliche vs. Basler Kantonalbank | Basellandschaftliche vs. Berner Kantonalbank AG | Basellandschaftliche vs. Luzerner Kantonalbank AG | Basellandschaftliche vs. Banque Cantonale |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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