Correlation Between VALORA HLDG and BCV Swiss

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

By analyzing existing cross correlation between VALORA HLDG OPEN and BCV Swiss Equity, you can compare the effects of market volatilities on VALORA HLDG and BCV Swiss 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 VALORA HLDG with a short position of BCV Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of VALORA HLDG and BCV Swiss.

Diversification Opportunities for VALORA HLDG and BCV Swiss

0.0

Correlation Coefficient

VALORA HLDG  BCV Swiss

Pay attention - limited upside

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

Pair Corralation between VALORA HLDG and BCV Swiss

If you would invest (100.00) in VALORA HLDG OPEN on September 27, 2024 and sell it today you would earn a total of  100.00  from holding VALORA HLDG OPEN or generate -100.0% return on investment over 90 days.

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

VALORA HLDG OPEN  vs.  BCV Swiss Equity

VALORA HLDG OPEN

Risk-Adjusted Performance

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Very Weak

Over the last 90 days VALORA HLDG OPEN has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, VALORA HLDG is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

BCV Swiss Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BCV Swiss Equity has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong forward indicators, BCV Swiss is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with VALORA HLDG and BCV Swiss

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

The idea behind VALORA HLDG OPEN and BCV Swiss Equity 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.