Correlation Between SoftwareONE Holding and Glarner Kantonalbank

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

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

Diversification Opportunities for SoftwareONE Holding and Glarner Kantonalbank

-0.07

Correlation Coefficient

SoftwareONE Holding  Glarner Kantonalbank

Good diversification

The 3 months correlation between SoftwareONE and Glarner is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SoftwareONE Holding AG and Glarner Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glarner Kantonalbank and SoftwareONE 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 SoftwareONE Holding 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 SoftwareONE Holding i.e., SoftwareONE Holding and Glarner Kantonalbank go up and down completely randomly.

Pair Corralation between SoftwareONE Holding and Glarner Kantonalbank

Assuming the 90 days trading horizon SoftwareONE Holding AG is expected to generate 3.89 times more return on investment than Glarner Kantonalbank. However, SoftwareONE Holding is 3.89 times more volatile than Glarner Kantonalbank. It trades about 0.13 of its potential returns per unit of risk. Glarner Kantonalbank is currently generating about -0.04 per unit of risk. If you would invest  729.00  in SoftwareONE Holding AG on September 3, 2025 and sell it today you would earn a total of  171.00  from holding SoftwareONE Holding AG or generate 23.46% return on investment over 90 days.

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

SoftwareONE Holding AG  vs.  Glarner Kantonalbank

SoftwareONE Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SoftwareONE Holding AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, SoftwareONE Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Glarner Kantonalbank

Risk-Adjusted Performance

Weakest

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 SoftwareONE Holding and Glarner Kantonalbank

The main advantage of trading using opposite SoftwareONE Holding and Glarner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftwareONE Holding 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 SoftwareONE Holding 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.