Correlation Between Burkhalter Holding and Swissquote Group
Can any of the company-specific risk be diversified away by investing in both Burkhalter Holding and Swissquote Group 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 Burkhalter Holding and Swissquote Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burkhalter Holding AG and Swissquote Group Holding, you can compare the effects of market volatilities on Burkhalter Holding and Swissquote Group 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 Burkhalter Holding with a short position of Swissquote Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burkhalter Holding and Swissquote Group.
Diversification Opportunities for Burkhalter Holding and Swissquote Group
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Burkhalter and Swissquote is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Burkhalter Holding AG and Swissquote Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissquote Group Holding and Burkhalter 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 Burkhalter Holding AG are associated (or correlated) with Swissquote Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissquote Group Holding has no effect on the direction of Burkhalter Holding i.e., Burkhalter Holding and Swissquote Group go up and down completely randomly.
Pair Corralation between Burkhalter Holding and Swissquote Group
Assuming the 90 days trading horizon Burkhalter Holding is expected to generate 1.75 times less return on investment than Swissquote Group. But when comparing it to its historical volatility, Burkhalter Holding AG is 1.74 times less risky than Swissquote Group. It trades about 0.27 of its potential returns per unit of risk. Swissquote Group Holding is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 39,029 in Swissquote Group Holding on April 24, 2025 and sell it today you would earn a total of 12,821 from holding Swissquote Group Holding or generate 32.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Burkhalter Holding AG vs. Swissquote Group Holding
Performance |
Timeline |
Burkhalter Holding |
Swissquote Group Holding |
Burkhalter Holding and Swissquote Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Burkhalter Holding and Swissquote Group
The main advantage of trading using opposite Burkhalter Holding and Swissquote Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burkhalter Holding position performs unexpectedly, Swissquote Group 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 Swissquote Group will offset losses from the drop in Swissquote Group's long position.Burkhalter Holding vs. mobilezone ag | Burkhalter Holding vs. Cembra Money Bank | Burkhalter Holding vs. OC Oerlikon Corp | Burkhalter Holding vs. Banque Cantonale |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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