Correlation Between St Galler and Cembra Money
Can any of the company-specific risk be diversified away by investing in both St Galler and Cembra Money 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 Cembra Money 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 Cembra Money Bank, you can compare the effects of market volatilities on St Galler and Cembra Money 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 Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Cembra Money.
Diversification Opportunities for St Galler and Cembra Money
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SGKN and Cembra is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank 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 Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of St Galler i.e., St Galler and Cembra Money go up and down completely randomly.
Pair Corralation between St Galler and Cembra Money
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to generate 0.88 times more return on investment than Cembra Money. However, St Galler Kantonalbank is 1.14 times less risky than Cembra Money. It trades about 0.04 of its potential returns per unit of risk. Cembra Money Bank is currently generating about -0.04 per unit of risk. If you would invest 49,800 in St Galler Kantonalbank on July 24, 2025 and sell it today you would earn a total of 800.00 from holding St Galler Kantonalbank or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Cembra Money Bank
Performance |
| Timeline |
| St Galler Kantonalbank |
| Cembra Money Bank |
St Galler and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Cembra Money
The main advantage of trading using opposite St Galler and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| St Galler vs. Cembra Money Bank | St Galler vs. Berner Kantonalbank AG | St Galler vs. Zuger Kantonalbank | St Galler vs. Liechtensteinische Landesbank AG |
| Cembra Money vs. Zuger Kantonalbank | Cembra Money vs. Berner Kantonalbank AG | Cembra Money vs. Liechtensteinische Landesbank AG | Cembra Money vs. St Galler Kantonalbank |
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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