Correlation Between Banque Cantonale and HBM Healthcare
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and HBM Healthcare 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 HBM Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale de and HBM Healthcare Investments, you can compare the effects of market volatilities on Banque Cantonale and HBM Healthcare 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 HBM Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and HBM Healthcare.
Diversification Opportunities for Banque Cantonale and HBM Healthcare
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banque and HBM is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale de and HBM Healthcare Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HBM Healthcare Inves 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 de are associated (or correlated) with HBM Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HBM Healthcare Inves has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and HBM Healthcare go up and down completely randomly.
Pair Corralation between Banque Cantonale and HBM Healthcare
Assuming the 90 days trading horizon Banque Cantonale is expected to generate 16.13 times less return on investment than HBM Healthcare. But when comparing it to its historical volatility, Banque Cantonale de is 1.32 times less risky than HBM Healthcare. It trades about 0.02 of its potential returns per unit of risk. HBM Healthcare Investments is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 17,560 in HBM Healthcare Investments on September 2, 2025 and sell it today you would earn a total of 3,240 from holding HBM Healthcare Investments or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale de vs. HBM Healthcare Investments
Performance |
| Timeline |
| Banque Cantonale |
| HBM Healthcare Inves |
Banque Cantonale and HBM Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and HBM Healthcare
The main advantage of trading using opposite Banque Cantonale and HBM Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, HBM Healthcare 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 HBM Healthcare will offset losses from the drop in HBM Healthcare's long position.| Banque Cantonale vs. Nestl SA | Banque Cantonale vs. Roche Holding AG | Banque Cantonale vs. Roche Holding AG | Banque Cantonale vs. Procimmo Real Estate |
| HBM Healthcare vs. Berner Kantonalbank AG | HBM Healthcare vs. SoftwareONE Holding AG | HBM Healthcare vs. Liechtensteinische Landesbank AG | HBM Healthcare vs. BB Biotech AG |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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