Correlation Between Banque Cantonale and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Banque Cantonale 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 Banque Cantonale 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 Banque Cantonale, you can compare the effects of market volatilities on Banque Cantonale and Banque Cantonale 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 Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Banque Cantonale.
Diversification Opportunities for Banque Cantonale and Banque Cantonale
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Banque and Banque is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Banque Cantonale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale 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 Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Banque Cantonale go up and down completely randomly.
Pair Corralation between Banque Cantonale and Banque Cantonale
Assuming the 90 days trading horizon Banque Cantonale du is expected to under-perform the Banque Cantonale. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale du is 2.07 times less risky than Banque Cantonale. The stock trades about -0.13 of its potential returns per unit of risk. The Banque Cantonale is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 8,545 in Banque Cantonale on September 5, 2024 and sell it today you would earn a total of 220.00 from holding Banque Cantonale or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. Banque Cantonale
Performance |
| Timeline |
| Banque Cantonale |
| Banque Cantonale |
Banque Cantonale and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Banque Cantonale
The main advantage of trading using opposite Banque Cantonale and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Luzerner Kantonalbank AG | Banque Cantonale vs. St Galler Kantonalbank | Banque Cantonale vs. Basler Kantonalbank |
| Banque Cantonale vs. Helvetia Holding AG | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Swisscom AG | Banque Cantonale 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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