Correlation Between Zuger Kantonalbank and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Zuger Kantonalbank and Banque Cantonale 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 Zuger Kantonalbank and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zuger Kantonalbank and Banque Cantonale du, you can compare the effects of market volatilities on Zuger Kantonalbank and Banque Cantonale 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 Zuger Kantonalbank with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zuger Kantonalbank and Banque Cantonale.
Diversification Opportunities for Zuger Kantonalbank and Banque Cantonale
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zuger and Banque is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zuger Kantonalbank and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Zuger Kantonalbank 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 Zuger Kantonalbank are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Zuger Kantonalbank i.e., Zuger Kantonalbank and Banque Cantonale go up and down completely randomly.
Pair Corralation between Zuger Kantonalbank and Banque Cantonale
Assuming the 90 days trading horizon Zuger Kantonalbank is expected to generate 1.06 times more return on investment than Banque Cantonale. However, Zuger Kantonalbank is 1.06 times more volatile than Banque Cantonale du. It trades about 0.08 of its potential returns per unit of risk. Banque Cantonale du is currently generating about 0.04 per unit of risk. If you would invest 749,833 in Zuger Kantonalbank on October 29, 2024 and sell it today you would earn a total of 100,167 from holding Zuger Kantonalbank or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zuger Kantonalbank vs. Banque Cantonale du
Performance |
| Timeline |
| Zuger Kantonalbank |
| Banque Cantonale |
Zuger Kantonalbank and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zuger Kantonalbank and Banque Cantonale
The main advantage of trading using opposite Zuger Kantonalbank and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zuger Kantonalbank position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Zuger Kantonalbank vs. Banque Cantonale | Zuger Kantonalbank vs. St Galler Kantonalbank | Zuger Kantonalbank vs. Luzerner Kantonalbank AG | Zuger Kantonalbank vs. PSP Swiss Property |
| Banque Cantonale vs. BB Biotech AG | Banque Cantonale vs. Adval Tech Holding | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Elma Electronic 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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