Correlation Between Valiant Holding and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Valiant Holding 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 Valiant Holding and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valiant Holding AG and Cembra Money Bank, you can compare the effects of market volatilities on Valiant Holding 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 Valiant Holding with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valiant Holding and Cembra Money.
Diversification Opportunities for Valiant Holding and Cembra Money
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valiant and Cembra is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Valiant Holding AG 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 Valiant Holding 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 Valiant Holding AG 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 Valiant Holding i.e., Valiant Holding and Cembra Money go up and down completely randomly.
Pair Corralation between Valiant Holding and Cembra Money
Assuming the 90 days trading horizon Valiant Holding AG is expected to generate 1.43 times more return on investment than Cembra Money. However, Valiant Holding is 1.43 times more volatile than Cembra Money Bank. It trades about 0.1 of its potential returns per unit of risk. Cembra Money Bank is currently generating about 0.02 per unit of risk. If you would invest 13,140 in Valiant Holding AG on August 15, 2025 and sell it today you would earn a total of 820.00 from holding Valiant Holding AG or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valiant Holding AG vs. Cembra Money Bank
Performance |
| Timeline |
| Valiant Holding AG |
| Cembra Money Bank |
Valiant Holding and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valiant Holding and Cembra Money
The main advantage of trading using opposite Valiant Holding and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valiant Holding 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.| Valiant Holding vs. Banque Cantonale du | Valiant Holding vs. Liechtensteinische Landesbank AG | Valiant Holding vs. Berner Kantonalbank AG | Valiant Holding vs. Banque Cantonale de |
| Cembra Money vs. Zuger Kantonalbank | Cembra Money vs. Liechtensteinische Landesbank AG | Cembra Money vs. Berner Kantonalbank 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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