Correlation Between Swiss Market and Swiss Leader
Can any of the company-specific risk be diversified away by investing in both Swiss Market and Swiss Leader 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 Market and Swiss Leader into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Market Index and Swiss Leader Price, you can compare the effects of market volatilities on Swiss Market and Swiss Leader 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 Market with a short position of Swiss Leader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Market and Swiss Leader.
Diversification Opportunities for Swiss Market and Swiss Leader
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Swiss and Swiss is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Market Index and Swiss Leader Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Leader Price and Swiss Market 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 Market Index are associated (or correlated) with Swiss Leader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Leader Price has no effect on the direction of Swiss Market i.e., Swiss Market and Swiss Leader go up and down completely randomly.
Pair Corralation between Swiss Market and Swiss Leader
If you would invest 191,700 in Swiss Leader Price on October 25, 2024 and sell it today you would earn a total of 10,434 from holding Swiss Leader Price or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Swiss Market Index vs. Swiss Leader Price
Performance |
| Timeline |
Swiss Market and Swiss Leader Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Market Index
Pair trading matchups for Swiss Market
Swiss Leader Price
Pair trading matchups for Swiss Leader
Pair Trading with Swiss Market and Swiss Leader
The main advantage of trading using opposite Swiss Market and Swiss Leader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Market position performs unexpectedly, Swiss Leader 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 Swiss Leader will offset losses from the drop in Swiss Leader's long position.| Swiss Market vs. Liechtensteinische Landesbank AG | Swiss Market vs. Graubuendner Kantonalbank | Swiss Market vs. Thurgauer Kantonalbank | Swiss Market vs. Schweizerische Nationalbank |
| Swiss Leader vs. Luzerner Kantonalbank AG | Swiss Leader vs. Hypothekarbank Lenzburg AG | Swiss Leader vs. Berner Kantonalbank AG | Swiss Leader vs. Glarner Kantonalbank |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |