Correlation Between Banque Cantonale and Immofonds
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Immofonds 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 Immofonds 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 Immofonds, you can compare the effects of market volatilities on Banque Cantonale and Immofonds 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 Immofonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Immofonds.
Diversification Opportunities for Banque Cantonale and Immofonds
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banque and Immofonds is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds 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 Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Immofonds go up and down completely randomly.
Pair Corralation between Banque Cantonale and Immofonds
Assuming the 90 days trading horizon Banque Cantonale is expected to generate 30.2 times less return on investment than Immofonds. But when comparing it to its historical volatility, Banque Cantonale du is 2.16 times less risky than Immofonds. It trades about 0.0 of its potential returns per unit of risk. Immofonds is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 59,000 in Immofonds on January 13, 2025 and sell it today you would earn a total of 500.00 from holding Immofonds or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. Immofonds
Performance |
| Timeline |
| Banque Cantonale |
| Immofonds |
Banque Cantonale and Immofonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Immofonds
The main advantage of trading using opposite Banque Cantonale and Immofonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Immofonds 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 Immofonds will offset losses from the drop in Immofonds' long position.| Banque Cantonale vs. Helvetia Holding AG | Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Vontobel Holding |
| Immofonds vs. Procimmo Real Estate | Immofonds vs. Baloise Holding AG | Immofonds vs. Banque Cantonale du | Immofonds vs. Invesco EQQQ NASDAQ 100 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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