Correlation Between Julius Baer and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Julius Baer and Cembra Money 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 Julius Baer and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Julius Baer Gruppe and Cembra Money Bank, you can compare the effects of market volatilities on Julius Baer and Cembra Money 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 Julius Baer with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Cembra Money.
Diversification Opportunities for Julius Baer and Cembra Money
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Julius and Cembra is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank and Julius Baer 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 Julius Baer Gruppe are associated (or correlated) with Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Julius Baer i.e., Julius Baer and Cembra Money go up and down completely randomly.
Pair Corralation between Julius Baer and Cembra Money
Assuming the 90 days trading horizon Julius Baer is expected to generate 3.73 times less return on investment than Cembra Money. In addition to that, Julius Baer is 2.42 times more volatile than Cembra Money Bank. It trades about 0.05 of its total potential returns per unit of risk. Cembra Money Bank is currently generating about 0.41 per unit of volatility. If you would invest 8,200 in Cembra Money Bank on November 30, 2024 and sell it today you would earn a total of 1,465 from holding Cembra Money Bank or generate 17.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Julius Baer Gruppe vs. Cembra Money Bank
Performance |
| Timeline |
| Julius Baer Gruppe |
| Cembra Money Bank |
Julius Baer and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Julius Baer and Cembra Money
The main advantage of trading using opposite Julius Baer and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Baer position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Julius Baer vs. Swiss Life Holding | Julius Baer vs. UBS Group AG | Julius Baer vs. Adecco Group AG | Julius Baer vs. Zurich Insurance Group |
| Cembra Money vs. Helvetia Holding AG | Cembra Money vs. Swiss Life Holding | Cembra Money vs. Baloise Holding AG | Cembra Money vs. Logitech International SA |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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