Correlation Between HBM Healthcare and Berner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both HBM Healthcare and Berner Kantonalbank 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 HBM Healthcare and Berner Kantonalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HBM Healthcare Investments and Berner Kantonalbank AG, you can compare the effects of market volatilities on HBM Healthcare and Berner Kantonalbank 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 HBM Healthcare with a short position of Berner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of HBM Healthcare and Berner Kantonalbank.
Diversification Opportunities for HBM Healthcare and Berner Kantonalbank
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HBM and Berner is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding HBM Healthcare Investments and Berner Kantonalbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berner Kantonalbank and HBM Healthcare 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 HBM Healthcare Investments are associated (or correlated) with Berner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berner Kantonalbank has no effect on the direction of HBM Healthcare i.e., HBM Healthcare and Berner Kantonalbank go up and down completely randomly.
Pair Corralation between HBM Healthcare and Berner Kantonalbank
Assuming the 90 days trading horizon HBM Healthcare Investments is expected to generate 1.79 times more return on investment than Berner Kantonalbank. However, HBM Healthcare is 1.79 times more volatile than Berner Kantonalbank AG. It trades about 0.23 of its potential returns per unit of risk. Berner Kantonalbank AG is currently generating about 0.16 per unit of risk. If you would invest 17,500 in HBM Healthcare Investments on September 3, 2025 and sell it today you would earn a total of 3,300 from holding HBM Healthcare Investments or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HBM Healthcare Investments vs. Berner Kantonalbank AG
Performance |
| Timeline |
| HBM Healthcare Inves |
| Berner Kantonalbank |
HBM Healthcare and Berner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HBM Healthcare and Berner Kantonalbank
The main advantage of trading using opposite HBM Healthcare and Berner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HBM Healthcare position performs unexpectedly, Berner Kantonalbank 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 Berner Kantonalbank will offset losses from the drop in Berner Kantonalbank's long position.| HBM Healthcare vs. Galenica Sante AG | HBM Healthcare vs. BB Biotech AG | HBM Healthcare vs. Idorsia | HBM Healthcare vs. Xlife Sciences AG |
| Berner Kantonalbank vs. Banque Cantonale | Berner Kantonalbank vs. St Galler Kantonalbank | Berner Kantonalbank vs. Banque Cantonale du | Berner Kantonalbank vs. Valiant Holding 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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