Correlation Between Vontobel Holding and Graubuendner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Vontobel Holding and Graubuendner Kantonalbank 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 Vontobel Holding and Graubuendner Kantonalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vontobel Holding and Graubuendner Kantonalbank, you can compare the effects of market volatilities on Vontobel Holding and Graubuendner Kantonalbank 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 Vontobel Holding with a short position of Graubuendner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontobel Holding and Graubuendner Kantonalbank.
Diversification Opportunities for Vontobel Holding and Graubuendner Kantonalbank
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vontobel and Graubuendner is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Vontobel Holding and Graubuendner Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graubuendner Kantonalbank and Vontobel Holding 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 Vontobel Holding are associated (or correlated) with Graubuendner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graubuendner Kantonalbank has no effect on the direction of Vontobel Holding i.e., Vontobel Holding and Graubuendner Kantonalbank go up and down completely randomly.
Pair Corralation between Vontobel Holding and Graubuendner Kantonalbank
Assuming the 90 days trading horizon Vontobel Holding is expected to generate 1.44 times more return on investment than Graubuendner Kantonalbank. However, Vontobel Holding is 1.44 times more volatile than Graubuendner Kantonalbank. It trades about 0.02 of its potential returns per unit of risk. Graubuendner Kantonalbank is currently generating about 0.02 per unit of risk. If you would invest 5,502 in Vontobel Holding on September 1, 2024 and sell it today you would earn a total of 308.00 from holding Vontobel Holding or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vontobel Holding vs. Graubuendner Kantonalbank
Performance |
| Timeline |
| Vontobel Holding |
| Graubuendner Kantonalbank |
Vontobel Holding and Graubuendner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vontobel Holding and Graubuendner Kantonalbank
The main advantage of trading using opposite Vontobel Holding and Graubuendner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontobel Holding position performs unexpectedly, Graubuendner Kantonalbank 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 Graubuendner Kantonalbank will offset losses from the drop in Graubuendner Kantonalbank's long position.| Vontobel Holding vs. Julius Baer Gruppe | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding vs. Sulzer AG | Vontobel Holding vs. Swiss Life Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |