Correlation Between Banque Cantonale and Cembra Money

Can any of the company-specific risk be diversified away by investing in both Banque Cantonale 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 Banque Cantonale and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Banque Cantonale and Cembra Money Bank, you can compare the effects of market volatilities on Banque Cantonale 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 Banque Cantonale with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Cembra Money.

Diversification Opportunities for Banque Cantonale and Cembra Money

0.53

Correlation Coefficient

Banque Cantonale  Cembra Money

Very weak diversification

The 3 months correlation between Banque and Cembra is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale 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 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 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 Banque Cantonale i.e., Banque Cantonale and Cembra Money go up and down completely randomly.

Pair Corralation between Banque Cantonale and Cembra Money

Assuming the 90 days trading horizon Banque Cantonale is expected to generate 2.89 times less return on investment than Cembra Money. But when comparing it to its historical volatility, Banque Cantonale is 1.0 times less risky than Cembra Money. It trades about 0.04 of its potential returns per unit of risk. Cembra Money Bank is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  9,655  in Cembra Money Bank on April 25, 2025 and sell it today you would earn a total of  565.00  from holding Cembra Money Bank or generate 5.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Banque Cantonale  vs.  Cembra Money Bank

Banque Cantonale

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Banque Cantonale are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Banque Cantonale is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Cembra Money Bank

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cembra Money Bank are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Cembra Money is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Banque Cantonale and Cembra Money

The main advantage of trading using opposite Banque Cantonale and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale 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.

The idea behind Banque Cantonale and Cembra Money Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.