Correlation Between St Galler and Calida Holding
Can any of the company-specific risk be diversified away by investing in both St Galler and Calida Holding 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 St Galler and Calida Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Calida Holding AG, you can compare the effects of market volatilities on St Galler and Calida Holding 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 St Galler with a short position of Calida Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Calida Holding.
Diversification Opportunities for St Galler and Calida Holding
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SGKN and Calida is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Calida Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calida Holding AG and St Galler 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 St Galler Kantonalbank are associated (or correlated) with Calida Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calida Holding AG has no effect on the direction of St Galler i.e., St Galler and Calida Holding go up and down completely randomly.
Pair Corralation between St Galler and Calida Holding
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to generate 0.4 times more return on investment than Calida Holding. However, St Galler Kantonalbank is 2.53 times less risky than Calida Holding. It trades about -0.04 of its potential returns per unit of risk. Calida Holding AG is currently generating about -0.02 per unit of risk. If you would invest 47,168 in St Galler Kantonalbank on September 4, 2024 and sell it today you would lose (4,068) from holding St Galler Kantonalbank or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Calida Holding AG
Performance |
| Timeline |
| St Galler Kantonalbank |
| Calida Holding AG |
St Galler and Calida Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Calida Holding
The main advantage of trading using opposite St Galler and Calida Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Calida Holding 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 Calida Holding will offset losses from the drop in Calida Holding's long position.| St Galler vs. Banque Cantonale | St Galler vs. Luzerner Kantonalbank AG | St Galler vs. Berner Kantonalbank AG | St Galler vs. Helvetia Holding AG |
| Calida Holding vs. Swatch Group AG | Calida Holding vs. Helvetia Holding AG | Calida Holding vs. Emmi AG | Calida Holding vs. Swissquote Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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