Correlation Between Valiant Holding and Thurgauer Kantonalbank

Can any of the company-specific risk be diversified away by investing in both Valiant Holding and Thurgauer 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 Valiant Holding and Thurgauer Kantonalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Valiant Holding AG and Thurgauer Kantonalbank, you can compare the effects of market volatilities on Valiant Holding and Thurgauer 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 Valiant Holding with a short position of Thurgauer Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valiant Holding and Thurgauer Kantonalbank.

Diversification Opportunities for Valiant Holding and Thurgauer Kantonalbank

0.78

Correlation Coefficient

Valiant Holding  Thurgauer Kantonalbank

Poor diversification

The 3 months correlation between Valiant and Thurgauer is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Valiant Holding AG and Thurgauer Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thurgauer Kantonalbank and Valiant 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 Valiant Holding AG are associated (or correlated) with Thurgauer Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thurgauer Kantonalbank has no effect on the direction of Valiant Holding i.e., Valiant Holding and Thurgauer Kantonalbank go up and down completely randomly.

Pair Corralation between Valiant Holding and Thurgauer Kantonalbank

Assuming the 90 days trading horizon Valiant Holding AG is expected to generate 0.7 times more return on investment than Thurgauer Kantonalbank. However, Valiant Holding AG is 1.42 times less risky than Thurgauer Kantonalbank. It trades about 0.28 of its potential returns per unit of risk. Thurgauer Kantonalbank is currently generating about 0.19 per unit of risk. If you would invest  11,470  in Valiant Holding AG on April 23, 2025 and sell it today you would earn a total of  1,670  from holding Valiant Holding AG or generate 14.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Valiant Holding AG  vs.  Thurgauer Kantonalbank

Valiant Holding AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Valiant Holding AG are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Valiant Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Thurgauer Kantonalbank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thurgauer Kantonalbank are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Thurgauer Kantonalbank showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Valiant Holding and Thurgauer Kantonalbank

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

The idea behind Valiant Holding AG and Thurgauer Kantonalbank 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.