Correlation Between Banque Cantonale and CS Real

Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and CS Real 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 CS Real 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 CS Real Estate, you can compare the effects of market volatilities on Banque Cantonale and CS Real 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 CS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and CS Real.

Diversification Opportunities for Banque Cantonale and CS Real

-0.65

Correlation Coefficient

Banque Cantonale  CS Real

Excellent diversification

The 3 months correlation between Banque and SIAT is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and CS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS Real Estate 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 CS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS Real Estate has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and CS Real go up and down completely randomly.

Pair Corralation between Banque Cantonale and CS Real

Assuming the 90 days trading horizon Banque Cantonale du is expected to generate 0.47 times more return on investment than CS Real. However, Banque Cantonale du is 2.11 times less risky than CS Real. It trades about 0.39 of its potential returns per unit of risk. CS Real Estate is currently generating about 0.12 per unit of risk. If you would invest  10,850  in Banque Cantonale du on October 15, 2024 and sell it today you would earn a total of  350.00  from holding Banque Cantonale du or generate 3.23% return on investment over 90 days.

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

Banque Cantonale du  vs.  CS Real Estate

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.

CS Real Estate

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CS Real Estate are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal basic indicators, CS Real may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Banque Cantonale and CS Real

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

The idea behind Banque Cantonale du and CS Real Estate 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..