Correlation Between Banque Cantonale and MULTI UNITS
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and MULTI UNITS 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 MULTI UNITS 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 MULTI UNITS LUXEMBOURG , you can compare the effects of market volatilities on Banque Cantonale and MULTI UNITS 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 MULTI UNITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and MULTI UNITS.
Diversification Opportunities for Banque Cantonale and MULTI UNITS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banque and MULTI is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and MULTI UNITS LUXEMBOURG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTI UNITS LUXEMBOURG 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 MULTI UNITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTI UNITS LUXEMBOURG has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and MULTI UNITS go up and down completely randomly.
Pair Corralation between Banque Cantonale and MULTI UNITS
Assuming the 90 days trading horizon Banque Cantonale du is expected to under-perform the MULTI UNITS. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale du is 1.05 times less risky than MULTI UNITS. The stock trades about -0.09 of its potential returns per unit of risk. The MULTI UNITS LUXEMBOURG is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 17,620 in MULTI UNITS LUXEMBOURG on September 19, 2024 and sell it today you would earn a total of 1,066 from holding MULTI UNITS LUXEMBOURG or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Banque Cantonale du vs. MULTI UNITS LUXEMBOURG
Performance |
| Timeline |
| Banque Cantonale |
| MULTI UNITS LUXEMBOURG |
Banque Cantonale and MULTI UNITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and MULTI UNITS
The main advantage of trading using opposite Banque Cantonale and MULTI UNITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, MULTI UNITS 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 MULTI UNITS will offset losses from the drop in MULTI UNITS'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 |
| MULTI UNITS vs. Baloise Holding AG | MULTI UNITS vs. 21Shares Polkadot ETP | MULTI UNITS vs. UBS ETF MSCI | MULTI UNITS vs. BB Biotech AG |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |