Correlation Between Banque Cantonale and Baloise Swiss
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Baloise Swiss 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 Banque Cantonale and Baloise Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale du and Baloise Swiss Property, you can compare the effects of market volatilities on Banque Cantonale and Baloise Swiss 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 Banque Cantonale with a short position of Baloise Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Baloise Swiss.
Diversification Opportunities for Banque Cantonale and Baloise Swiss
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banque and Baloise is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Baloise Swiss Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baloise Swiss Property and Banque Cantonale 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 Banque Cantonale du are associated (or correlated) with Baloise Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baloise Swiss Property has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Baloise Swiss go up and down completely randomly.
Pair Corralation between Banque Cantonale and Baloise Swiss
Assuming the 90 days trading horizon Banque Cantonale is expected to generate 3.12 times less return on investment than Baloise Swiss. But when comparing it to its historical volatility, Banque Cantonale du is 1.37 times less risky than Baloise Swiss. It trades about 0.01 of its potential returns per unit of risk. Baloise Swiss Property is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11,496 in Baloise Swiss Property on September 19, 2024 and sell it today you would earn a total of 1,204 from holding Baloise Swiss Property or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Banque Cantonale du vs. Baloise Swiss Property
Performance |
| Timeline |
| Banque Cantonale |
| Baloise Swiss Property |
Banque Cantonale and Baloise Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Baloise Swiss
The main advantage of trading using opposite Banque Cantonale and Baloise Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Baloise Swiss 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 Baloise Swiss will offset losses from the drop in Baloise Swiss' long position.| Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Berner Kantonalbank AG | Banque Cantonale vs. Luzerner Kantonalbank AG | Banque Cantonale vs. Banque Cantonale de |
| Baloise Swiss vs. SPDR Dow Jones | Baloise Swiss vs. Baloise Holding AG | Baloise Swiss vs. Banque Cantonale du | Baloise Swiss vs. 21Shares Polkadot ETP |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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