Correlation Between PSP Swiss and Swiss Prime
Can any of the company-specific risk be diversified away by investing in both PSP Swiss and Swiss Prime 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 PSP Swiss and Swiss Prime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSP Swiss Property and Swiss Prime Site, you can compare the effects of market volatilities on PSP Swiss and Swiss Prime 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 PSP Swiss with a short position of Swiss Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSP Swiss and Swiss Prime.
Diversification Opportunities for PSP Swiss and Swiss Prime
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PSP and Swiss is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PSP Swiss Property and Swiss Prime Site in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Prime Site and PSP Swiss 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 PSP Swiss Property are associated (or correlated) with Swiss Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Prime Site has no effect on the direction of PSP Swiss i.e., PSP Swiss and Swiss Prime go up and down completely randomly.
Pair Corralation between PSP Swiss and Swiss Prime
Assuming the 90 days trading horizon PSP Swiss is expected to generate 1.97 times less return on investment than Swiss Prime. In addition to that, PSP Swiss is 1.24 times more volatile than Swiss Prime Site. It trades about 0.01 of its total potential returns per unit of risk. Swiss Prime Site is currently generating about 0.03 per unit of volatility. If you would invest 9,510 in Swiss Prime Site on August 28, 2024 and sell it today you would earn a total of 85.00 from holding Swiss Prime Site or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSP Swiss Property vs. Swiss Prime Site
Performance |
| Timeline |
| PSP Swiss Property |
| Swiss Prime Site |
PSP Swiss and Swiss Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSP Swiss and Swiss Prime
The main advantage of trading using opposite PSP Swiss and Swiss Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSP Swiss position performs unexpectedly, Swiss Prime 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 Swiss Prime will offset losses from the drop in Swiss Prime's long position.| PSP Swiss vs. Swiss Prime Site | PSP Swiss vs. Allreal Holding | PSP Swiss vs. Mobimo Hldg | PSP Swiss vs. Helvetia Holding AG |
| Swiss Prime vs. PSP Swiss Property | Swiss Prime vs. Allreal Holding | Swiss Prime vs. Helvetia Holding AG | Swiss Prime vs. Baloise Holding 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets |