BCV Swiss Correlations

The current 90-days correlation between BCV Swiss Equity and Procimmo Real Estate is -0.07 (i.e., Good diversification). The correlation of BCV Swiss is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

The ability to find closely correlated positions to BCV Swiss could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BCV Swiss when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back BCV Swiss - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling BCV Swiss Equity to buy it.