Correlation Between Schweizerische Nationalbank and Summit Bank
Can any of the company-specific risk be diversified away by investing in both Schweizerische Nationalbank and Summit Bank 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 Schweizerische Nationalbank and Summit Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweizerische Nationalbank and Summit Bank Group, you can compare the effects of market volatilities on Schweizerische Nationalbank and Summit Bank 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 Schweizerische Nationalbank with a short position of Summit Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizerische Nationalbank and Summit Bank.
Diversification Opportunities for Schweizerische Nationalbank and Summit Bank
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schweizerische and Summit is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Schweizerische Nationalbank and Summit Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Bank Group and Schweizerische Nationalbank 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 Schweizerische Nationalbank are associated (or correlated) with Summit Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Bank Group has no effect on the direction of Schweizerische Nationalbank i.e., Schweizerische Nationalbank and Summit Bank go up and down completely randomly.
Pair Corralation between Schweizerische Nationalbank and Summit Bank
Assuming the 90 days horizon Schweizerische Nationalbank is expected to under-perform the Summit Bank. But the pink sheet apears to be less risky and, when comparing its historical volatility, Schweizerische Nationalbank is 4.04 times less risky than Summit Bank. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Summit Bank Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,430 in Summit Bank Group on October 10, 2024 and sell it today you would lose (20.00) from holding Summit Bank Group or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweizerische Nationalbank vs. Summit Bank Group
Performance |
| Timeline |
| Schweizerische Nationalbank |
| Summit Bank Group |
Schweizerische Nationalbank and Summit Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweizerische Nationalbank and Summit Bank
The main advantage of trading using opposite Schweizerische Nationalbank and Summit Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweizerische Nationalbank position performs unexpectedly, Summit Bank 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 Summit Bank will offset losses from the drop in Summit Bank's long position.| Schweizerische Nationalbank vs. Israel Discount Bank | Schweizerische Nationalbank vs. Baraboo Bancorporation | Schweizerische Nationalbank vs. Danske Bank AS | Schweizerische Nationalbank vs. Jyske Bank AS |
| Summit Bank vs. Savi Financial | Summit Bank vs. Pacific West Bancorp | Summit Bank vs. Commencement Bancorp | Summit Bank vs. Merchants Marine Bancorp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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