Correlation Between Procimmo Real and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Procimmo Real 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 Procimmo Real and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procimmo Real Estate and Banque Cantonale du, you can compare the effects of market volatilities on Procimmo Real 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 Procimmo Real with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procimmo Real and Banque Cantonale.
Diversification Opportunities for Procimmo Real and Banque Cantonale
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procimmo and Banque is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Procimmo Real 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 Procimmo Real Estate 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 Procimmo Real i.e., Procimmo Real and Banque Cantonale go up and down completely randomly.
Pair Corralation between Procimmo Real and Banque Cantonale
Assuming the 90 days trading horizon Procimmo Real Estate is expected to generate 0.81 times more return on investment than Banque Cantonale. However, Procimmo Real Estate is 1.23 times less risky than Banque Cantonale. It trades about 0.1 of its potential returns per unit of risk. Banque Cantonale du is currently generating about 0.07 per unit of risk. If you would invest 16,400 in Procimmo Real Estate on October 29, 2024 and sell it today you would earn a total of 180.00 from holding Procimmo Real Estate or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procimmo Real Estate vs. Banque Cantonale du
Performance |
| Timeline |
| Procimmo Real Estate |
| Banque Cantonale |
Procimmo Real and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procimmo Real and Banque Cantonale
The main advantage of trading using opposite Procimmo Real and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procimmo Real 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.| Procimmo Real vs. CS Real Estate | Procimmo Real vs. Swissinvest Real Estate | Procimmo Real vs. CS Real Estate | Procimmo Real vs. Realstone Swiss Property |
| Banque Cantonale vs. BB Biotech AG | Banque Cantonale vs. Adval Tech Holding | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Elma Electronic AG |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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