Correlation Between St Galler and Vaudoise Assurances
Can any of the company-specific risk be diversified away by investing in both St Galler and Vaudoise Assurances 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 Vaudoise Assurances 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 Vaudoise Assurances Holding, you can compare the effects of market volatilities on St Galler and Vaudoise Assurances 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 Vaudoise Assurances. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Vaudoise Assurances.
Diversification Opportunities for St Galler and Vaudoise Assurances
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SGKN and Vaudoise is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Vaudoise Assurances Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaudoise Assurances 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 Vaudoise Assurances. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaudoise Assurances has no effect on the direction of St Galler i.e., St Galler and Vaudoise Assurances go up and down completely randomly.
Pair Corralation between St Galler and Vaudoise Assurances
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to generate 0.65 times more return on investment than Vaudoise Assurances. However, St Galler Kantonalbank is 1.54 times less risky than Vaudoise Assurances. It trades about 0.05 of its potential returns per unit of risk. Vaudoise Assurances Holding is currently generating about -0.07 per unit of risk. If you would invest 51,200 in St Galler Kantonalbank on August 21, 2025 and sell it today you would earn a total of 900.00 from holding St Galler Kantonalbank or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Vaudoise Assurances Holding
Performance |
| Timeline |
| St Galler Kantonalbank |
| Vaudoise Assurances |
St Galler and Vaudoise Assurances Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Vaudoise Assurances
The main advantage of trading using opposite St Galler and Vaudoise Assurances positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Vaudoise Assurances 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 Vaudoise Assurances will offset losses from the drop in Vaudoise Assurances' 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 |
| Vaudoise Assurances vs. Banque Cantonale de | Vaudoise Assurances vs. Banque Cantonale du | Vaudoise Assurances vs. Valiant Holding AG | Vaudoise Assurances vs. HBM Healthcare Investments |
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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