Correlation Between CSIF I and Baloise Holding
Specify exactly 2 symbols:
By analyzing existing cross correlation between CSIF I Bond and Baloise Holding AG, you can compare the effects of market volatilities on CSIF I and Baloise Holding 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 CSIF I with a short position of Baloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSIF I and Baloise Holding.
Diversification Opportunities for CSIF I and Baloise Holding
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSIF and Baloise is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding CSIF I Bond and Baloise Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baloise Holding AG and CSIF I 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 CSIF I Bond are associated (or correlated) with Baloise Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baloise Holding AG has no effect on the direction of CSIF I i.e., CSIF I and Baloise Holding go up and down completely randomly.
Pair Corralation between CSIF I and Baloise Holding
Assuming the 90 days trading horizon CSIF I is expected to generate 9.71 times less return on investment than Baloise Holding. But when comparing it to its historical volatility, CSIF I Bond is 3.09 times less risky than Baloise Holding. It trades about 0.04 of its potential returns per unit of risk. Baloise Holding AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 13,848 in Baloise Holding AG on December 8, 2024 and sell it today you would earn a total of 3,882 from holding Baloise Holding AG or generate 28.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
CSIF I Bond vs. Baloise Holding AG
Performance |
| Timeline |
| CSIF I Bond |
| Baloise Holding AG |
CSIF I and Baloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSIF I and Baloise Holding
The main advantage of trading using opposite CSIF I and Baloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSIF I position performs unexpectedly, Baloise Holding 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 Baloise Holding will offset losses from the drop in Baloise Holding's long position.The idea behind CSIF I Bond and Baloise Holding AG 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.| Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Swisscom AG | Baloise Holding vs. Zurich Insurance Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |