Correlation Between Banque Cantonale and CS Real
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and CS Real 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 CS Real 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 CS Real Estate, you can compare the effects of market volatilities on Banque Cantonale and CS Real 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 CS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and CS Real.
Diversification Opportunities for Banque Cantonale and CS Real
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banque and CSLP is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and CS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS Real Estate 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 CS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS Real Estate has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and CS Real go up and down completely randomly.
Pair Corralation between Banque Cantonale and CS Real
Assuming the 90 days trading horizon Banque Cantonale du is expected to under-perform the CS Real. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale du is 1.42 times less risky than CS Real. The stock trades about -0.09 of its potential returns per unit of risk. The CS Real Estate is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 14,700 in CS Real Estate on September 19, 2024 and sell it today you would earn a total of 1,050 from holding CS Real Estate or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. CS Real Estate
Performance |
| Timeline |
| Banque Cantonale |
| CS Real Estate |
Banque Cantonale and CS Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and CS Real
The main advantage of trading using opposite Banque Cantonale and CS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, CS Real 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 CS Real will offset losses from the drop in CS Real's 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 |
| CS Real vs. SPDR Dow Jones | CS Real vs. Baloise Holding AG | CS Real vs. SPDR FTSE UK | CS Real vs. Banque Cantonale du |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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