Correlation Between Banque Cantonale and UBSFund Solutions

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

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

Diversification Opportunities for Banque Cantonale and UBSFund Solutions

0.68

Correlation Coefficient

Banque Cantonale  UBSFund Solutions

Poor diversification

The 3 months correlation between Banque and UBSFund is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and UBSFund Solutions MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions MSCI and Banque Cantonale 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 Banque Cantonale du are associated (or correlated) with UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions MSCI has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and UBSFund Solutions go up and down completely randomly.

Pair Corralation between Banque Cantonale and UBSFund Solutions

Assuming the 90 days trading horizon Banque Cantonale du is expected to generate 0.31 times more return on investment than UBSFund Solutions. However, Banque Cantonale du is 3.18 times less risky than UBSFund Solutions. It trades about 0.04 of its potential returns per unit of risk. UBSFund Solutions MSCI is currently generating about -0.02 per unit of risk. If you would invest  9,833  in Banque Cantonale du on September 26, 2024 and sell it today you would earn a total of  1,267  from holding Banque Cantonale du or generate 12.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	90.36%
Values	Daily Returns

Banque Cantonale du  vs.  UBSFund Solutions MSCI

Banque Cantonale

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Banque Cantonale du has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Banque Cantonale is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

UBSFund Solutions MSCI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UBSFund Solutions MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

Pair Trading with Banque Cantonale and UBSFund Solutions

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

The idea behind Banque Cantonale du and UBSFund Solutions MSCI 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.