Correlation Between Banque Cantonale and SF Sustainable
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and SF Sustainable 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 SF Sustainable 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 SF Sustainable Property, you can compare the effects of market volatilities on Banque Cantonale and SF Sustainable 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 SF Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and SF Sustainable.
Diversification Opportunities for Banque Cantonale and SF Sustainable
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banque and SFPF is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and SF Sustainable Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SF Sustainable Property 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 SF Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SF Sustainable Property has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and SF Sustainable go up and down completely randomly.
Pair Corralation between Banque Cantonale and SF Sustainable
Assuming the 90 days trading horizon Banque Cantonale du is expected to under-perform the SF Sustainable. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale du is 1.71 times less risky than SF Sustainable. The stock trades about -0.09 of its potential returns per unit of risk. The SF Sustainable Property is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,550 in SF Sustainable Property on September 14, 2024 and sell it today you would earn a total of 200.00 from holding SF Sustainable Property or generate 1.59% 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. SF Sustainable Property
Performance |
| Timeline |
| Banque Cantonale |
| SF Sustainable Property |
Banque Cantonale and SF Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and SF Sustainable
The main advantage of trading using opposite Banque Cantonale and SF Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, SF Sustainable 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 SF Sustainable will offset losses from the drop in SF Sustainable's long position.| Banque Cantonale vs. St Galler Kantonalbank | Banque Cantonale vs. VP Bank AG | Banque Cantonale vs. mobilezone ag | Banque Cantonale vs. Thurgauer Kantonalbank |
| SF Sustainable vs. SPDR Dow Jones | SF Sustainable vs. Baloise Holding AG | SF Sustainable vs. SPDR FTSE UK | SF Sustainable 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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