Correlation Between Vontobel Holding and Valiant Holding
Can any of the company-specific risk be diversified away by investing in both Vontobel Holding and Valiant Holding 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 Valiant Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vontobel Holding and Valiant Holding AG, you can compare the effects of market volatilities on Vontobel Holding and Valiant Holding 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 Valiant Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontobel Holding and Valiant Holding.
Diversification Opportunities for Vontobel Holding and Valiant Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vontobel and Valiant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vontobel Holding and Valiant Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valiant Holding AG 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 Valiant Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valiant Holding AG has no effect on the direction of Vontobel Holding i.e., Vontobel Holding and Valiant Holding go up and down completely randomly.
Pair Corralation between Vontobel Holding and Valiant Holding
If you would invest (100.00) in Valiant Holding AG on January 24, 2025 and sell it today you would earn a total of 100.00 from holding Valiant Holding AG or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vontobel Holding vs. Valiant Holding AG
Performance |
| Timeline |
| Vontobel Holding |
| Valiant Holding AG |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Vontobel Holding and Valiant Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vontobel Holding and Valiant Holding
The main advantage of trading using opposite Vontobel Holding and Valiant Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontobel Holding position performs unexpectedly, Valiant Holding 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 Valiant Holding will offset losses from the drop in Valiant Holding'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 |
| Valiant Holding vs. Helvetia Holding AG | Valiant Holding vs. Banque Cantonale | Valiant Holding vs. Cembra Money Bank | Valiant Holding vs. Vontobel 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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