Correlation Between St Galler and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both St Galler and Alibaba 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 St Galler and Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Alibaba Group Holding, you can compare the effects of market volatilities on St Galler and Alibaba 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 St Galler with a short position of Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Alibaba Group.
Diversification Opportunities for St Galler and Alibaba Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QQZ and Alibaba is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding and St Galler 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 St Galler Kantonalbank are associated (or correlated) with Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of St Galler i.e., St Galler and Alibaba Group go up and down completely randomly.
Pair Corralation between St Galler and Alibaba Group
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to generate 0.28 times more return on investment than Alibaba Group. However, St Galler Kantonalbank is 3.53 times less risky than Alibaba Group. It trades about 0.22 of its potential returns per unit of risk. Alibaba Group Holding is currently generating about 0.03 per unit of risk. If you would invest 50,200 in St Galler Kantonalbank on September 12, 2025 and sell it today you would earn a total of 5,300 from holding St Galler Kantonalbank or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Alibaba Group Holding
Performance |
| Timeline |
| St Galler Kantonalbank |
| Alibaba Group Holding |
St Galler and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Alibaba Group
The main advantage of trading using opposite St Galler and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Alibaba 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| St Galler vs. Roadside Real Estate | St Galler vs. Power Metal Resources | St Galler vs. Tamburi Investment Partners | St Galler vs. Synergia Energy |
| Alibaba Group vs. Fidelity National Information | Alibaba Group vs. American Homes 4 | Alibaba Group vs. Public Storage | Alibaba Group vs. Silver Bullet Data |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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