Correlation Between Banque Cantonale and Procimmo Real
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Procimmo 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 Procimmo 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 Procimmo Real Estate, you can compare the effects of market volatilities on Banque Cantonale and Procimmo 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 Procimmo Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Procimmo Real.
Diversification Opportunities for Banque Cantonale and Procimmo Real
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banque and Procimmo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Procimmo Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procimmo 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 Procimmo Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procimmo Real Estate has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Procimmo Real go up and down completely randomly.
Pair Corralation between Banque Cantonale and Procimmo Real
Assuming the 90 days trading horizon Banque Cantonale du is expected to generate 0.49 times more return on investment than Procimmo Real. However, Banque Cantonale du is 2.05 times less risky than Procimmo Real. It trades about -0.22 of its potential returns per unit of risk. Procimmo Real Estate is currently generating about -0.11 per unit of risk. If you would invest 11,250 in Banque Cantonale du on August 28, 2024 and sell it today you would lose (200.00) from holding Banque Cantonale du or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. Procimmo Real Estate
Performance |
| Timeline |
| Banque Cantonale |
| Procimmo Real Estate |
Banque Cantonale and Procimmo Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Procimmo Real
The main advantage of trading using opposite Banque Cantonale and Procimmo Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Procimmo 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 Procimmo Real will offset losses from the drop in Procimmo Real's long position.| Banque Cantonale vs. Swissquote Group Holding | Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Barry Callebaut AG | Banque Cantonale vs. Vontobel Holding |
| Procimmo Real vs. SPDR Dow Jones | Procimmo Real vs. Baloise Holding AG | Procimmo Real vs. Autoneum Holding AG | Procimmo 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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