Correlation Between St Galler and Mobilezone
Can any of the company-specific risk be diversified away by investing in both St Galler and Mobilezone 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 Mobilezone 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 mobilezone ag, you can compare the effects of market volatilities on St Galler and Mobilezone 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 Mobilezone. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Mobilezone.
Diversification Opportunities for St Galler and Mobilezone
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SGKN and Mobilezone is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and mobilezone ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone 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 Mobilezone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone ag has no effect on the direction of St Galler i.e., St Galler and Mobilezone go up and down completely randomly.
Pair Corralation between St Galler and Mobilezone
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to under-perform the Mobilezone. But the stock apears to be less risky and, when comparing its historical volatility, St Galler Kantonalbank is 1.78 times less risky than Mobilezone. The stock trades about -0.04 of its potential returns per unit of risk. The mobilezone ag is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,337 in mobilezone ag on August 29, 2024 and sell it today you would earn a total of 63.00 from holding mobilezone ag or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. mobilezone ag
Performance |
| Timeline |
| St Galler Kantonalbank |
| mobilezone ag |
St Galler and Mobilezone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Mobilezone
The main advantage of trading using opposite St Galler and Mobilezone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Mobilezone 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 Mobilezone will offset losses from the drop in Mobilezone'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 |
| Mobilezone vs. Graubuendner Kantonalbank | Mobilezone vs. Swiss Steel Holding | Mobilezone vs. Basler Kantonalbank | Mobilezone vs. Berner Kantonalbank 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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