Correlation Between LO Funds and Julius Baer
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By analyzing existing cross correlation between LO Funds Swiss and Julius Baer Edelweiss, you can compare the effects of market volatilities on LO Funds and Julius Baer 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 LO Funds with a short position of Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of LO Funds and Julius Baer.
Diversification Opportunities for LO Funds and Julius Baer
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between 0P00001R8Q and Julius is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding LO Funds Swiss and Julius Baer Edelweiss in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Edelweiss and LO Funds 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 LO Funds Swiss are associated (or correlated) with Julius Baer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Baer Edelweiss has no effect on the direction of LO Funds i.e., LO Funds and Julius Baer go up and down completely randomly.
Pair Corralation between LO Funds and Julius Baer
Assuming the 90 days trading horizon LO Funds is expected to generate 2.0 times less return on investment than Julius Baer. But when comparing it to its historical volatility, LO Funds Swiss is 1.0 times less risky than Julius Baer. It trades about 0.03 of its potential returns per unit of risk. Julius Baer Edelweiss is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12,382 in Julius Baer Edelweiss on September 20, 2024 and sell it today you would earn a total of 2,610 from holding Julius Baer Edelweiss or generate 21.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LO Funds Swiss vs. Julius Baer Edelweiss
Performance |
| Timeline |
| LO Funds Swiss |
| Julius Baer Edelweiss |
LO Funds and Julius Baer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LO Funds and Julius Baer
The main advantage of trading using opposite LO Funds and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LO Funds position performs unexpectedly, Julius Baer 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 Julius Baer will offset losses from the drop in Julius Baer's long position.| LO Funds vs. SPDR Dow Jones | LO Funds vs. Baloise Holding AG | LO Funds vs. Banque Cantonale du | LO Funds vs. 21Shares Polkadot ETP |
Check out your portfolio center.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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