Correlation Between Zuger Kantonalbank and LandisGyr Group
Can any of the company-specific risk be diversified away by investing in both Zuger Kantonalbank and LandisGyr Group 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 Zuger Kantonalbank and LandisGyr Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zuger Kantonalbank and LandisGyr Group AG, you can compare the effects of market volatilities on Zuger Kantonalbank and LandisGyr Group 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 Zuger Kantonalbank with a short position of LandisGyr Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zuger Kantonalbank and LandisGyr Group.
Diversification Opportunities for Zuger Kantonalbank and LandisGyr Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zuger and LandisGyr is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zuger Kantonalbank and LandisGyr Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandisGyr Group AG and Zuger Kantonalbank 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 Zuger Kantonalbank are associated (or correlated) with LandisGyr Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandisGyr Group AG has no effect on the direction of Zuger Kantonalbank i.e., Zuger Kantonalbank and LandisGyr Group go up and down completely randomly.
Pair Corralation between Zuger Kantonalbank and LandisGyr Group
Assuming the 90 days trading horizon Zuger Kantonalbank is expected to generate 0.23 times more return on investment than LandisGyr Group. However, Zuger Kantonalbank is 4.43 times less risky than LandisGyr Group. It trades about 0.15 of its potential returns per unit of risk. LandisGyr Group AG is currently generating about -0.09 per unit of risk. If you would invest 846,000 in Zuger Kantonalbank on December 5, 2024 and sell it today you would earn a total of 48,000 from holding Zuger Kantonalbank or generate 5.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.67% |
Values | Daily Returns |
Zuger Kantonalbank vs. LandisGyr Group AG
Performance |
Timeline |
Zuger Kantonalbank |
LandisGyr Group AG |
Zuger Kantonalbank and LandisGyr Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zuger Kantonalbank and LandisGyr Group
The main advantage of trading using opposite Zuger Kantonalbank and LandisGyr Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zuger Kantonalbank position performs unexpectedly, LandisGyr Group 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 LandisGyr Group will offset losses from the drop in LandisGyr Group's long position.Zuger Kantonalbank vs. Banque Cantonale | Zuger Kantonalbank vs. St Galler Kantonalbank | Zuger Kantonalbank vs. Luzerner Kantonalbank AG | Zuger Kantonalbank vs. PSP Swiss Property |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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