Correlation Between Thurgauer Kantonalbank and Chocoladefabriken

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

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

Diversification Opportunities for Thurgauer Kantonalbank and Chocoladefabriken

-0.04

Correlation Coefficient

Thurgauer Kantonalbank  Chocoladefabriken

Good diversification

The 3 months correlation between Thurgauer and Chocoladefabriken is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Thurgauer Kantonalbank and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt and Thurgauer Kantonalbank 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 Thurgauer Kantonalbank are associated (or correlated) with Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Thurgauer Kantonalbank i.e., Thurgauer Kantonalbank and Chocoladefabriken go up and down completely randomly.

Pair Corralation between Thurgauer Kantonalbank and Chocoladefabriken

Assuming the 90 days trading horizon Thurgauer Kantonalbank is expected to generate 0.68 times more return on investment than Chocoladefabriken. However, Thurgauer Kantonalbank is 1.46 times less risky than Chocoladefabriken. It trades about 0.06 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about -0.11 per unit of risk. If you would invest  15,900  in Thurgauer Kantonalbank on September 7, 2025 and sell it today you would earn a total of  450.00  from holding Thurgauer Kantonalbank or generate 2.83% return on investment over 90 days.

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

Thurgauer Kantonalbank  vs.  Chocoladefabriken Lindt Spruen

Thurgauer Kantonalbank

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Thurgauer Kantonalbank are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Thurgauer Kantonalbank is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Chocoladefabriken Lindt

Risk-Adjusted Performance

Weakest

Over the last 90 days Chocoladefabriken Lindt Spruengli has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Thurgauer Kantonalbank and Chocoladefabriken

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

The idea behind Thurgauer Kantonalbank and Chocoladefabriken Lindt Spruengli 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.