Correlation Between Banque Cantonale and Swiss Life
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Swiss Life 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 Swiss Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale and Swiss Life Holding, you can compare the effects of market volatilities on Banque Cantonale and Swiss Life 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 Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Swiss Life.
Diversification Opportunities for Banque Cantonale and Swiss Life
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Banque and Swiss is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 are associated (or correlated) with Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Swiss Life go up and down completely randomly.
Pair Corralation between Banque Cantonale and Swiss Life
Assuming the 90 days trading horizon Banque Cantonale is expected to under-perform the Swiss Life. In addition to that, Banque Cantonale is 1.09 times more volatile than Swiss Life Holding. It trades about -0.06 of its total potential returns per unit of risk. Swiss Life Holding is currently generating about 0.04 per unit of volatility. If you would invest 84,000 in Swiss Life Holding on July 23, 2025 and sell it today you would earn a total of 1,440 from holding Swiss Life Holding or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale vs. Swiss Life Holding
Performance |
| Timeline |
| Banque Cantonale |
| Swiss Life Holding |
Banque Cantonale and Swiss Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Swiss Life
The main advantage of trading using opposite Banque Cantonale and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life's long position.| Banque Cantonale vs. Swissquote Group Holding | Banque Cantonale vs. Baloise Holding AG | Banque Cantonale vs. Luzerner Kantonalbank AG | Banque Cantonale vs. Zuger Kantonalbank |
| Swiss Life vs. Partners Group Holding | Swiss Life vs. Helvetia Holding AG | Swiss Life vs. Baloise Holding AG | Swiss Life vs. Swiss Re 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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