Correlation Between Banque Cantonale and Vaudoise Assurances
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale 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 Banque Cantonale and Vaudoise Assurances into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale du and Vaudoise Assurances Holding, you can compare the effects of market volatilities on Banque Cantonale 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 Banque Cantonale with a short position of Vaudoise Assurances. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Vaudoise Assurances.
Diversification Opportunities for Banque Cantonale and Vaudoise Assurances
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banque and Vaudoise is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Vaudoise Assurances Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaudoise Assurances and Banque Cantonale 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 Banque Cantonale du 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 Banque Cantonale i.e., Banque Cantonale and Vaudoise Assurances go up and down completely randomly.
Pair Corralation between Banque Cantonale and Vaudoise Assurances
Assuming the 90 days trading horizon Banque Cantonale du is expected to generate 0.6 times more return on investment than Vaudoise Assurances. However, Banque Cantonale du is 1.67 times less risky than Vaudoise Assurances. It trades about 0.03 of its potential returns per unit of risk. Vaudoise Assurances Holding is currently generating about -0.02 per unit of risk. If you would invest 12,750 in Banque Cantonale du on August 14, 2025 and sell it today you would earn a total of 150.00 from holding Banque Cantonale du or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. Vaudoise Assurances Holding
Performance |
| Timeline |
| Banque Cantonale |
| Vaudoise Assurances |
Banque Cantonale and Vaudoise Assurances Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Vaudoise Assurances
The main advantage of trading using opposite Banque Cantonale and Vaudoise Assurances positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale 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.| Banque Cantonale vs. Valiant Holding AG | Banque Cantonale vs. Banque Cantonale de | Banque Cantonale vs. Berner Kantonalbank AG | Banque Cantonale 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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