Correlation Between Swissquote Group and Basellandschaftliche
Can any of the company-specific risk be diversified away by investing in both Swissquote Group 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 Swissquote Group and Basellandschaftliche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swissquote Group Holding and Basellandschaftliche Kantonalbank, you can compare the effects of market volatilities on Swissquote Group 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 Swissquote Group with a short position of Basellandschaftliche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swissquote Group and Basellandschaftliche.
Diversification Opportunities for Swissquote Group and Basellandschaftliche
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swissquote and Basellandschaftliche is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Swissquote Group Holding and Basellandschaftliche Kantonalb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basellandschaftliche and Swissquote Group 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 Swissquote Group Holding 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 Swissquote Group i.e., Swissquote Group and Basellandschaftliche go up and down completely randomly.
Pair Corralation between Swissquote Group and Basellandschaftliche
Assuming the 90 days trading horizon Swissquote Group Holding is expected to generate 3.29 times more return on investment than Basellandschaftliche. However, Swissquote Group is 3.29 times more volatile than Basellandschaftliche Kantonalbank. It trades about 0.15 of its potential returns per unit of risk. Basellandschaftliche Kantonalbank is currently generating about 0.03 per unit of risk. If you would invest 19,244 in Swissquote Group Holding on September 2, 2024 and sell it today you would earn a total of 15,336 from holding Swissquote Group Holding or generate 79.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swissquote Group Holding vs. Basellandschaftliche Kantonalb
Performance |
| Timeline |
| Swissquote Group Holding |
| Basellandschaftliche |
Swissquote Group and Basellandschaftliche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swissquote Group and Basellandschaftliche
The main advantage of trading using opposite Swissquote Group and Basellandschaftliche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swissquote Group 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.| Swissquote Group vs. Carlo Gavazzi Holding | Swissquote Group vs. Bellevue Group AG | Swissquote Group vs. Bucher Industries AG | Swissquote Group vs. Hubersuhner 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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