Correlation Between Baloise Holding and LO Funds
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By analyzing existing cross correlation between Baloise Holding AG and LO Funds Swiss, you can compare the effects of market volatilities on Baloise Holding and LO Funds 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 Baloise Holding with a short position of LO Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and LO Funds.
Diversification Opportunities for Baloise Holding and LO Funds
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baloise and 0P00001R8Q is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and LO Funds Swiss in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LO Funds Swiss and Baloise 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 Baloise Holding AG are associated (or correlated) with LO Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LO Funds Swiss has no effect on the direction of Baloise Holding i.e., Baloise Holding and LO Funds go up and down completely randomly.
Pair Corralation between Baloise Holding and LO Funds
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 1.2 times more return on investment than LO Funds. However, Baloise Holding is 1.2 times more volatile than LO Funds Swiss. It trades about 0.02 of its potential returns per unit of risk. LO Funds Swiss is currently generating about -0.04 per unit of risk. If you would invest 15,980 in Baloise Holding AG on September 19, 2024 and sell it today you would earn a total of 380.00 from holding Baloise Holding AG or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Baloise Holding AG vs. LO Funds Swiss
Performance |
| Timeline |
| Baloise Holding AG |
| LO Funds Swiss |
Baloise Holding and LO Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and LO Funds
The main advantage of trading using opposite Baloise Holding and LO Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, LO Funds 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 LO Funds will offset losses from the drop in LO Funds' long position.| Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Swisscom AG | Baloise Holding vs. Zurich Insurance Group |
| LO Funds vs. SPDR Dow Jones | LO Funds vs. Baloise Holding AG | LO Funds vs. Banque Cantonale du | LO Funds vs. 21Shares Polkadot ETP |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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