Correlation Between Banque Cantonale and Xtrackers MSCI
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Xtrackers MSCI 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 Xtrackers MSCI 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 Xtrackers MSCI USA, you can compare the effects of market volatilities on Banque Cantonale and Xtrackers MSCI 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 Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Xtrackers MSCI.
Diversification Opportunities for Banque Cantonale and Xtrackers MSCI
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banque and Xtrackers is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Xtrackers MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI USA 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 Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI USA has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Xtrackers MSCI go up and down completely randomly.
Pair Corralation between Banque Cantonale and Xtrackers MSCI
Assuming the 90 days trading horizon Banque Cantonale du is expected to under-perform the Xtrackers MSCI. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale du is 2.25 times less risky than Xtrackers MSCI. The stock trades about -0.04 of its potential returns per unit of risk. The Xtrackers MSCI USA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 14,620 in Xtrackers MSCI USA on August 24, 2024 and sell it today you would earn a total of 722.00 from holding Xtrackers MSCI USA or generate 4.94% 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. Xtrackers MSCI USA
Performance |
| Timeline |
| Banque Cantonale |
| Xtrackers MSCI USA |
Banque Cantonale and Xtrackers MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Xtrackers MSCI
The main advantage of trading using opposite Banque Cantonale and Xtrackers MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Xtrackers MSCI 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 Xtrackers MSCI will offset losses from the drop in Xtrackers MSCI's long position.| Banque Cantonale vs. BB Biotech AG | Banque Cantonale vs. Adval Tech Holding | Banque Cantonale vs. Basler Kantonalbank | Banque Cantonale vs. Zurich Insurance Group |
| Xtrackers MSCI vs. Xtrackers MSCI USA | Xtrackers MSCI vs. Xtrackers USD Corporate | Xtrackers MSCI vs. Xtrackers MSCI AC | Xtrackers MSCI vs. Xtrackers MSCI World |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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