Correlation Between Swisscanto and Swisscanto ETF

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

By analyzing existing cross correlation between Swisscanto CH Real and Swisscanto ETF Precious, you can compare the effects of market volatilities on Swisscanto and Swisscanto ETF 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 Swisscanto with a short position of Swisscanto ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swisscanto and Swisscanto ETF.

Diversification Opportunities for Swisscanto and Swisscanto ETF

0.0

Correlation Coefficient

Swisscanto  Swisscanto ETF

Pay attention - limited upside

The 3 months correlation between Swisscanto and Swisscanto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Swisscanto CH Real and Swisscanto ETF Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swisscanto ETF Precious and Swisscanto 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 Swisscanto CH Real are associated (or correlated) with Swisscanto ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swisscanto ETF Precious has no effect on the direction of Swisscanto i.e., Swisscanto and Swisscanto ETF go up and down completely randomly.

Pair Corralation between Swisscanto and Swisscanto ETF

If you would invest  14,518  in Swisscanto CH Real on September 28, 2024 and sell it today you would earn a total of  4,632  from holding Swisscanto CH Real or generate 31.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Swisscanto CH Real  vs.  Swisscanto ETF Precious

Swisscanto CH Real

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Swisscanto CH Real are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, Swisscanto is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Swisscanto ETF Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Swisscanto ETF Precious has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Swisscanto ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Swisscanto and Swisscanto ETF

The main advantage of trading using opposite Swisscanto and Swisscanto ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swisscanto position performs unexpectedly, Swisscanto ETF 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 Swisscanto ETF will offset losses from the drop in Swisscanto ETF's long position.

The idea behind Swisscanto CH Real and Swisscanto ETF Precious 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.