Correlation Between Julius Baer and Vontobel Holding
Can any of the company-specific risk be diversified away by investing in both Julius Baer and Vontobel 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 Julius Baer and Vontobel Holding 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 Vontobel Holding, you can compare the effects of market volatilities on Julius Baer and Vontobel 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 Julius Baer with a short position of Vontobel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Vontobel Holding.
Diversification Opportunities for Julius Baer and Vontobel Holding
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Julius and Vontobel is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel Holding 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 Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of Julius Baer i.e., Julius Baer and Vontobel Holding go up and down completely randomly.
Pair Corralation between Julius Baer and Vontobel Holding
Assuming the 90 days trading horizon Julius Baer Gruppe is expected to generate 1.11 times more return on investment than Vontobel Holding. However, Julius Baer is 1.11 times more volatile than Vontobel Holding. It trades about 0.31 of its potential returns per unit of risk. Vontobel Holding is currently generating about 0.17 per unit of risk. If you would invest 5,864 in Julius Baer Gruppe on October 25, 2024 and sell it today you would earn a total of 334.00 from holding Julius Baer Gruppe or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Julius Baer Gruppe vs. Vontobel Holding
Performance |
| Timeline |
| Julius Baer Gruppe |
| Vontobel Holding |
Julius Baer and Vontobel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Julius Baer and Vontobel Holding
The main advantage of trading using opposite Julius Baer and Vontobel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Baer position performs unexpectedly, Vontobel 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 Vontobel Holding will offset losses from the drop in Vontobel Holding'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 |
| Vontobel Holding vs. Julius Baer Gruppe | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding vs. Sulzer AG | Vontobel Holding vs. Swiss Life Holding |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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