Correlation Between Vontobel Holding and Schweizerische Nationalbank
Can any of the company-specific risk be diversified away by investing in both Vontobel Holding and Schweizerische Nationalbank 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 Schweizerische Nationalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vontobel Holding and Schweizerische Nationalbank, you can compare the effects of market volatilities on Vontobel Holding and Schweizerische Nationalbank 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 Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontobel Holding and Schweizerische Nationalbank.
Diversification Opportunities for Vontobel Holding and Schweizerische Nationalbank
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vontobel and Schweizerische is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Vontobel Holding and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Vontobel Holding i.e., Vontobel Holding and Schweizerische Nationalbank go up and down completely randomly.
Pair Corralation between Vontobel Holding and Schweizerische Nationalbank
Assuming the 90 days trading horizon Vontobel Holding is expected to generate 0.61 times more return on investment than Schweizerische Nationalbank. However, Vontobel Holding is 1.65 times less risky than Schweizerische Nationalbank. It trades about 0.13 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about -0.03 per unit of risk. If you would invest 5,450 in Vontobel Holding on October 25, 2024 and sell it today you would earn a total of 1,120 from holding Vontobel Holding or generate 20.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Vontobel Holding vs. Schweizerische Nationalbank
Performance |
| Timeline |
| Vontobel Holding |
| Schweizerische Nationalbank |
Vontobel Holding and Schweizerische Nationalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vontobel Holding and Schweizerische Nationalbank
The main advantage of trading using opposite Vontobel Holding and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontobel Holding position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |