Correlation Between Siegfried Holding and Banque Cantonale

Can any of the company-specific risk be diversified away by investing in both Siegfried Holding 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 Siegfried Holding and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siegfried Holding and Banque Cantonale de, you can compare the effects of market volatilities on Siegfried Holding 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 Siegfried Holding with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siegfried Holding and Banque Cantonale.

Diversification Opportunities for Siegfried Holding and Banque Cantonale

0.16

Correlation Coefficient

Siegfried Holding  Banque Cantonale

Average diversification

The 3 months correlation between Siegfried and Banque is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Siegfried Holding and Banque Cantonale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Siegfried Holding 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 Siegfried Holding 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 Siegfried Holding i.e., Siegfried Holding and Banque Cantonale go up and down completely randomly.

Pair Corralation between Siegfried Holding and Banque Cantonale

Assuming the 90 days trading horizon Siegfried Holding is expected to under-perform the Banque Cantonale. In addition to that, Siegfried Holding is 1.74 times more volatile than Banque Cantonale de. It trades about -0.12 of its total potential returns per unit of risk. Banque Cantonale de is currently generating about 0.18 per unit of volatility. If you would invest  24,600  in Banque Cantonale de on November 28, 2024 and sell it today you would earn a total of  2,600  from holding Banque Cantonale de or generate 10.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Siegfried Holding  vs.  Banque Cantonale de

Siegfried Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siegfried Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in March 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Banque Cantonale

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Banque Cantonale de are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Banque Cantonale may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Siegfried Holding and Banque Cantonale

The main advantage of trading using opposite Siegfried Holding and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siegfried Holding 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.

The idea behind Siegfried Holding and Banque Cantonale de pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.