Correlation Between Vaudoise Assurances and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Vaudoise Assurances and Banque Cantonale 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 Vaudoise Assurances and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaudoise Assurances Holding and Banque Cantonale de, you can compare the effects of market volatilities on Vaudoise Assurances and Banque Cantonale 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 Vaudoise Assurances with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaudoise Assurances and Banque Cantonale.
Diversification Opportunities for Vaudoise Assurances and Banque Cantonale
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vaudoise and Banque is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Vaudoise Assurances Holding and Banque Cantonale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Vaudoise Assurances 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 Vaudoise Assurances Holding are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Vaudoise Assurances i.e., Vaudoise Assurances and Banque Cantonale go up and down completely randomly.
Pair Corralation between Vaudoise Assurances and Banque Cantonale
Assuming the 90 days trading horizon Vaudoise Assurances Holding is expected to generate 0.84 times more return on investment than Banque Cantonale. However, Vaudoise Assurances Holding is 1.19 times less risky than Banque Cantonale. It trades about 0.11 of its potential returns per unit of risk. Banque Cantonale de is currently generating about -0.01 per unit of risk. If you would invest 63,000 in Vaudoise Assurances Holding on August 13, 2025 and sell it today you would earn a total of 1,200 from holding Vaudoise Assurances Holding or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaudoise Assurances Holding vs. Banque Cantonale de
Performance |
| Timeline |
| Vaudoise Assurances |
| Banque Cantonale |
Vaudoise Assurances and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaudoise Assurances and Banque Cantonale
The main advantage of trading using opposite Vaudoise Assurances and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaudoise Assurances position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Vaudoise Assurances vs. Banque Cantonale de | Vaudoise Assurances vs. Banque Cantonale du | Vaudoise Assurances vs. Valiant Holding AG | Vaudoise Assurances vs. HBM Healthcare Investments |
| Banque Cantonale vs. Banque Cantonale du | Banque Cantonale vs. Valiant Holding AG | Banque Cantonale vs. Graubuendner Kantonalbank | Banque Cantonale vs. Vaudoise Assurances Holding |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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