Correlation Between Banque Cantonale and Zuger Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Zuger Kantonalbank 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 Zuger Kantonalbank 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 Zuger Kantonalbank, you can compare the effects of market volatilities on Banque Cantonale and Zuger Kantonalbank 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 Zuger Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Zuger Kantonalbank.
Diversification Opportunities for Banque Cantonale and Zuger Kantonalbank
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Banque and Zuger is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Zuger Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zuger Kantonalbank 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 Zuger Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zuger Kantonalbank has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Zuger Kantonalbank go up and down completely randomly.
Pair Corralation between Banque Cantonale and Zuger Kantonalbank
Assuming the 90 days trading horizon Banque Cantonale is expected to generate 1.51 times less return on investment than Zuger Kantonalbank. In addition to that, Banque Cantonale is 1.26 times more volatile than Zuger Kantonalbank. It trades about 0.01 of its total potential returns per unit of risk. Zuger Kantonalbank is currently generating about 0.02 per unit of volatility. If you would invest 870,000 in Zuger Kantonalbank on August 17, 2025 and sell it today you would earn a total of 6,000 from holding Zuger Kantonalbank or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. Zuger Kantonalbank
Performance |
| Timeline |
| Banque Cantonale |
| Zuger Kantonalbank |
Banque Cantonale and Zuger Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Zuger Kantonalbank
The main advantage of trading using opposite Banque Cantonale and Zuger Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Zuger Kantonalbank 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 Zuger Kantonalbank will offset losses from the drop in Zuger Kantonalbank's 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 |
| Zuger Kantonalbank vs. Berner Kantonalbank AG | Zuger Kantonalbank vs. Liechtensteinische Landesbank AG | Zuger Kantonalbank vs. Cembra Money Bank | Zuger Kantonalbank vs. Valiant Holding AG |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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