Correlation Between LandisGyr Group and Glarner Kantonalbank

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

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

Diversification Opportunities for LandisGyr Group and Glarner Kantonalbank

0.5

Correlation Coefficient

LandisGyr Group  Glarner Kantonalbank

Very weak diversification

The 3 months correlation between LandisGyr and Glarner is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding LandisGyr Group AG and Glarner Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glarner Kantonalbank and LandisGyr Group 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 LandisGyr Group AG are associated (or correlated) with Glarner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glarner Kantonalbank has no effect on the direction of LandisGyr Group i.e., LandisGyr Group and Glarner Kantonalbank go up and down completely randomly.

Pair Corralation between LandisGyr Group and Glarner Kantonalbank

Assuming the 90 days trading horizon LandisGyr Group AG is expected to under-perform the Glarner Kantonalbank. In addition to that, LandisGyr Group is 2.02 times more volatile than Glarner Kantonalbank. It trades about -0.27 of its total potential returns per unit of risk. Glarner Kantonalbank is currently generating about 0.0 per unit of volatility. If you would invest  2,090  in Glarner Kantonalbank on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Glarner Kantonalbank or generate 0.0% return on investment over 90 days.

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

LandisGyr Group AG  vs.  Glarner Kantonalbank

LandisGyr Group AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LandisGyr Group AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Glarner Kantonalbank

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glarner Kantonalbank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Glarner Kantonalbank is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with LandisGyr Group and Glarner Kantonalbank

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

The idea behind LandisGyr Group AG and Glarner 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.