Correlation Between Allreal Holding and Baloise Holding
Can any of the company-specific risk be diversified away by investing in both Allreal Holding and Baloise 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 Allreal Holding and Baloise Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allreal Holding and Baloise Holding AG, you can compare the effects of market volatilities on Allreal Holding 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 Allreal Holding with a short position of Baloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allreal Holding and Baloise Holding.
Diversification Opportunities for Allreal Holding and Baloise Holding
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allreal and Baloise is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Allreal Holding 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 Allreal Holding 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 Allreal Holding 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 Allreal Holding i.e., Allreal Holding and Baloise Holding go up and down completely randomly.
Pair Corralation between Allreal Holding and Baloise Holding
Assuming the 90 days trading horizon Allreal Holding is expected to generate 1.4 times less return on investment than Baloise Holding. But when comparing it to its historical volatility, Allreal Holding is 1.4 times less risky than Baloise Holding. It trades about 0.06 of its potential returns per unit of risk. Baloise Holding AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 15,590 in Baloise Holding AG on August 29, 2024 and sell it today you would earn a total of 1,040 from holding Baloise Holding AG or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allreal Holding vs. Baloise Holding AG
Performance |
| Timeline |
| Allreal Holding |
| Baloise Holding AG |
Allreal Holding and Baloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allreal Holding and Baloise Holding
The main advantage of trading using opposite Allreal Holding and Baloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allreal Holding 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.| Allreal Holding vs. PSP Swiss Property | Allreal Holding vs. Swiss Prime Site | Allreal Holding vs. Helvetia Holding AG | Allreal Holding vs. Banque Cantonale |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |