Correlation Between Swiss Leader and Basellandschaftliche
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and Basellandschaftliche 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 Swiss Leader and Basellandschaftliche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Leader Price and Basellandschaftliche Kantonalbank, you can compare the effects of market volatilities on Swiss Leader and Basellandschaftliche 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 Swiss Leader with a short position of Basellandschaftliche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Basellandschaftliche.
Diversification Opportunities for Swiss Leader and Basellandschaftliche
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Swiss and Basellandschaftliche is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and Basellandschaftliche Kantonalb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basellandschaftliche and Swiss Leader 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 Swiss Leader Price are associated (or correlated) with Basellandschaftliche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basellandschaftliche has no effect on the direction of Swiss Leader i.e., Swiss Leader and Basellandschaftliche go up and down completely randomly.
Pair Corralation between Swiss Leader and Basellandschaftliche
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 1.53 times more return on investment than Basellandschaftliche. However, Swiss Leader is 1.53 times more volatile than Basellandschaftliche Kantonalbank. It trades about 0.06 of its potential returns per unit of risk. Basellandschaftliche Kantonalbank is currently generating about 0.04 per unit of risk. If you would invest 177,200 in Swiss Leader Price on September 3, 2024 and sell it today you would earn a total of 16,856 from holding Swiss Leader Price or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Swiss Leader Price vs. Basellandschaftliche Kantonalb
Performance |
| Timeline |
Swiss Leader and Basellandschaftliche Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Basellandschaftliche Kantonalbank
Pair trading matchups for Basellandschaftliche
Pair Trading with Swiss Leader and Basellandschaftliche
The main advantage of trading using opposite Swiss Leader and Basellandschaftliche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, Basellandschaftliche 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 Basellandschaftliche will offset losses from the drop in Basellandschaftliche's long position.| Swiss Leader vs. VP Bank AG | Swiss Leader vs. Basler Kantonalbank | Swiss Leader vs. Thurgauer Kantonalbank | Swiss Leader vs. Liechtensteinische Landesbank AG |
| Basellandschaftliche vs. Basler Kantonalbank | Basellandschaftliche vs. Berner Kantonalbank AG | Basellandschaftliche vs. Luzerner Kantonalbank AG | Basellandschaftliche vs. Banque Cantonale |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |