Correlation Between Arch Capital and Bâloise Holding
Can any of the company-specific risk be diversified away by investing in both Arch Capital and Bâloise Holding 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 Arch Capital and Bâloise Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arch Capital Group and Bloise Holding AG, you can compare the effects of market volatilities on Arch Capital and Bâloise 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 Arch Capital with a short position of Bâloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arch Capital and Bâloise Holding.
Diversification Opportunities for Arch Capital and Bâloise Holding
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arch and Bâloise is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Arch Capital Group and Bloise Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloise Holding AG and Arch Capital 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 Arch Capital Group are associated (or correlated) with Bâloise Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloise Holding AG has no effect on the direction of Arch Capital i.e., Arch Capital and Bâloise Holding go up and down completely randomly.
Pair Corralation between Arch Capital and Bâloise Holding
If you would invest 9,998 in Arch Capital Group on August 31, 2024 and sell it today you would earn a total of 76.00 from holding Arch Capital Group or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arch Capital Group vs. Bloise Holding AG
Performance |
| Timeline |
| Arch Capital Group |
| Bloise Holding AG |
Arch Capital and Bâloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arch Capital and Bâloise Holding
The main advantage of trading using opposite Arch Capital and Bâloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arch Capital position performs unexpectedly, Bâloise 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 Bâloise Holding will offset losses from the drop in Bâloise Holding's long position.| Arch Capital vs. Axa Equitable Holdings | Arch Capital vs. American International Group | Arch Capital vs. Hartford Financial Services | Arch Capital vs. Goosehead Insurance |
| Bâloise Holding vs. Berkshire Hathaway | Bâloise Holding vs. American International Group | Bâloise Holding vs. Arch Capital Group | Bâloise Holding vs. Sun Life Financial |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |