Correlation Between Schweizerische Nationalbank and RIV Capital

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

By analyzing existing cross correlation between Schweizerische Nationalbank and RIV Capital, you can compare the effects of market volatilities on Schweizerische Nationalbank and RIV Capital 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 Schweizerische Nationalbank with a short position of RIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizerische Nationalbank and RIV Capital.

Diversification Opportunities for Schweizerische Nationalbank and RIV Capital

0.0

Correlation Coefficient

Schweizerische Nationalbank  RIV Capital

Pay attention - limited upside

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

Pair Corralation between Schweizerische Nationalbank and RIV Capital

If you would invest  353,738  in Schweizerische Nationalbank on December 30, 2024 and sell it today you would earn a total of  25,906  from holding Schweizerische Nationalbank or generate 7.32% return on investment over 90 days.

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

Schweizerische Nationalbank  vs.  RIV Capital

Schweizerische Nationalbank

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Schweizerische Nationalbank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Schweizerische Nationalbank may actually be approaching a critical reversion point that can send shares even higher in April 2025.

RIV Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days RIV Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, RIV Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Schweizerische Nationalbank and RIV Capital

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

The idea behind Schweizerische Nationalbank and RIV Capital 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.