Correlation Between Swiss Leader and ZKB Platinum
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and ZKB Platinum 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 ZKB Platinum 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 ZKB Platinum ETF, you can compare the effects of market volatilities on Swiss Leader and ZKB Platinum 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 ZKB Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and ZKB Platinum.
Diversification Opportunities for Swiss Leader and ZKB Platinum
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Swiss and ZKB is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and ZKB Platinum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Platinum ETF 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 ZKB Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Platinum ETF has no effect on the direction of Swiss Leader i.e., Swiss Leader and ZKB Platinum go up and down completely randomly.
Pair Corralation between Swiss Leader and ZKB Platinum
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 0.59 times more return on investment than ZKB Platinum. However, Swiss Leader Price is 1.68 times less risky than ZKB Platinum. It trades about 0.02 of its potential returns per unit of risk. ZKB Platinum ETF is currently generating about 0.0 per unit of risk. If you would invest 194,439 in Swiss Leader Price on September 5, 2024 and sell it today you would earn a total of 493.00 from holding Swiss Leader Price or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Leader Price vs. ZKB Platinum ETF
Performance |
| Timeline |
Swiss Leader and ZKB Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
ZKB Platinum ETF
Pair trading matchups for ZKB Platinum
Pair Trading with Swiss Leader and ZKB Platinum
The main advantage of trading using opposite Swiss Leader and ZKB Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, ZKB Platinum 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 ZKB Platinum will offset losses from the drop in ZKB Platinum's long position.| Swiss Leader vs. Swiss Steel Holding | Swiss Leader vs. Schweiter Technologies AG | Swiss Leader vs. Cembra Money Bank | Swiss Leader vs. Graubuendner Kantonalbank |
| ZKB Platinum vs. Vanguard SP 500 | ZKB Platinum vs. iShares Core SP | ZKB Platinum vs. Lyxor Japan UCITS | ZKB Platinum vs. iShares SP 500 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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