Correlation Between Swiss Prime and Varia Properties

Can any of the company-specific risk be diversified away by investing in both Swiss Prime and Varia Properties 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 Swiss Prime and Varia Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Swiss Prime Site and Varia Properties, you can compare the effects of market volatilities on Swiss Prime and Varia Properties 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 Swiss Prime with a short position of Varia Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Prime and Varia Properties.

Diversification Opportunities for Swiss Prime and Varia Properties

0.0

Correlation Coefficient

Swiss Prime  Varia Properties

Pay attention - limited upside

The 3 months correlation between Swiss and Varia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Prime Site and Varia Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varia Properties and Swiss Prime 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 Swiss Prime Site are associated (or correlated) with Varia Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varia Properties has no effect on the direction of Swiss Prime i.e., Swiss Prime and Varia Properties go up and down completely randomly.

Pair Corralation between Swiss Prime and Varia Properties

If you would invest  11,350  in Swiss Prime Site on April 24, 2025 and sell it today you would earn a total of  380.00  from holding Swiss Prime Site or generate 3.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Swiss Prime Site  vs.  Varia Properties

Swiss Prime Site

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swiss Prime Site are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Swiss Prime is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Varia Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Varia Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Varia Properties is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Swiss Prime and Varia Properties

The main advantage of trading using opposite Swiss Prime and Varia Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Prime position performs unexpectedly, Varia Properties 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 Varia Properties will offset losses from the drop in Varia Properties' long position.

The idea behind Swiss Prime Site and Varia Properties 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.