Correlation Between Swiss Steel and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Swiss Steel 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 Swiss Steel and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Steel Holding and Banque Cantonale du, you can compare the effects of market volatilities on Swiss Steel 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 Swiss Steel with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Steel and Banque Cantonale.
Diversification Opportunities for Swiss Steel and Banque Cantonale
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swiss and Banque is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Steel Holding and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Swiss Steel 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 Steel Holding 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 Swiss Steel i.e., Swiss Steel and Banque Cantonale go up and down completely randomly.
Pair Corralation between Swiss Steel and Banque Cantonale
Assuming the 90 days trading horizon Swiss Steel Holding is expected to under-perform the Banque Cantonale. In addition to that, Swiss Steel is 12.6 times more volatile than Banque Cantonale du. It trades about -0.02 of its total potential returns per unit of risk. Banque Cantonale du is currently generating about 0.04 per unit of volatility. If you would invest 9,739 in Banque Cantonale du on September 12, 2024 and sell it today you would earn a total of 1,311 from holding Banque Cantonale du or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Steel Holding vs. Banque Cantonale du
Performance |
| Timeline |
| Swiss Steel Holding |
| Banque Cantonale |
Swiss Steel and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Steel and Banque Cantonale
The main advantage of trading using opposite Swiss Steel and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Steel 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.| Swiss Steel vs. OC Oerlikon Corp | Swiss Steel vs. Meyer Burger Tech | Swiss Steel vs. Evolva Holding SA | Swiss Steel vs. Sulzer AG |
| Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Berner Kantonalbank AG | Banque Cantonale vs. Luzerner Kantonalbank AG | Banque Cantonale vs. Banque Cantonale de |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |