Correlation Between St Galler and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both St Galler 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 St Galler and Banque Cantonale 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 Banque Cantonale du, you can compare the effects of market volatilities on St Galler 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 St Galler with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Banque Cantonale.
Diversification Opportunities for St Galler and Banque Cantonale
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SGKN and Banque is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale 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 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 St Galler i.e., St Galler and Banque Cantonale go up and down completely randomly.
Pair Corralation between St Galler and Banque Cantonale
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to generate 1.35 times more return on investment than Banque Cantonale. However, St Galler is 1.35 times more volatile than Banque Cantonale du. It trades about 0.02 of its potential returns per unit of risk. Banque Cantonale du is currently generating about -0.12 per unit of risk. If you would invest 42,300 in St Galler Kantonalbank on September 2, 2024 and sell it today you would earn a total of 300.00 from holding St Galler Kantonalbank or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Banque Cantonale du
Performance |
| Timeline |
| St Galler Kantonalbank |
| Banque Cantonale |
St Galler and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Banque Cantonale
The main advantage of trading using opposite St Galler and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler 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.| St Galler vs. Banque Cantonale | St Galler vs. Luzerner Kantonalbank AG | St Galler vs. Berner Kantonalbank AG | St Galler vs. Helvetia Holding AG |
| Banque Cantonale vs. Zurich Insurance Group | Banque Cantonale vs. VP Bank AG | Banque Cantonale vs. Metall Zug AG | Banque Cantonale vs. Luzerner 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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