Correlation Between SwissCom and Compagnie
Can any of the company-specific risk be diversified away by investing in both SwissCom and Compagnie 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 SwissCom and Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SwissCom AG and Compagnie de Saint Gobain, you can compare the effects of market volatilities on SwissCom and Compagnie 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 SwissCom with a short position of Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of SwissCom and Compagnie.
Diversification Opportunities for SwissCom and Compagnie
Very good diversification
The 3 months correlation between SwissCom and Compagnie is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SwissCom AG and Compagnie de Saint Gobain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Saint and SwissCom 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 SwissCom AG are associated (or correlated) with Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Saint has no effect on the direction of SwissCom i.e., SwissCom and Compagnie go up and down completely randomly.
Pair Corralation between SwissCom and Compagnie
Assuming the 90 days horizon SwissCom AG is expected to under-perform the Compagnie. But the pink sheet apears to be less risky and, when comparing its historical volatility, SwissCom AG is 1.48 times less risky than Compagnie. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Compagnie de Saint Gobain is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,843 in Compagnie de Saint Gobain on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Compagnie de Saint Gobain or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SwissCom AG vs. Compagnie de Saint Gobain
Performance |
| Timeline |
| SwissCom AG |
| Compagnie de Saint |
SwissCom and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SwissCom and Compagnie
The main advantage of trading using opposite SwissCom and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SwissCom position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| SwissCom vs. Telecom Argentina SA | SwissCom vs. Rogers Communications | SwissCom vs. Magyar Telekom Plc | SwissCom vs. Hellenic Telecommunications Org |
| Compagnie vs. Trane Technologies plc | Compagnie vs. AAON Inc | Compagnie vs. Quanex Building Products | Compagnie vs. Gibraltar Industries |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |