Correlation Between Ams AG and Julius Baer
Can any of the company-specific risk be diversified away by investing in both Ams AG and Julius Baer 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 Ams AG and Julius Baer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ams AG and Julius Baer Gruppe, you can compare the effects of market volatilities on Ams AG 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 Ams AG with a short position of Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ams AG and Julius Baer.
Diversification Opportunities for Ams AG and Julius Baer
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ams and Julius is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ams AG and Julius Baer Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Gruppe and Ams AG 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 Ams AG 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 Gruppe has no effect on the direction of Ams AG i.e., Ams AG and Julius Baer go up and down completely randomly.
Pair Corralation between Ams AG and Julius Baer
Assuming the 90 days trading horizon Ams AG is expected to under-perform the Julius Baer. In addition to that, Ams AG is 3.45 times more volatile than Julius Baer Gruppe. It trades about -0.12 of its total potential returns per unit of risk. Julius Baer Gruppe is currently generating about 0.17 per unit of volatility. If you would invest 5,492 in Julius Baer Gruppe on October 26, 2024 and sell it today you would earn a total of 752.00 from holding Julius Baer Gruppe or generate 13.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ams AG vs. Julius Baer Gruppe
Performance |
| Timeline |
| Ams AG |
| Julius Baer Gruppe |
Ams AG and Julius Baer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ams AG and Julius Baer
The main advantage of trading using opposite Ams AG and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ams AG 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.| Ams AG vs. Logitech International SA | Ams AG vs. Temenos Group AG | Ams AG vs. Swiss Re AG | Ams AG vs. UBS Group AG |
| Julius Baer vs. Swiss Life Holding | Julius Baer vs. UBS Group AG | Julius Baer vs. Adecco Group AG | Julius Baer 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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