Correlation Between Baloise Holding and 21Shares Ripple
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and 21Shares Ripple 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 Baloise Holding and 21Shares Ripple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baloise Holding AG and 21Shares Ripple XRP, you can compare the effects of market volatilities on Baloise Holding and 21Shares Ripple 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 21Shares Ripple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and 21Shares Ripple.
Diversification Opportunities for Baloise Holding and 21Shares Ripple
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baloise and 21Shares is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and 21Shares Ripple XRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Ripple XRP 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 21Shares Ripple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Ripple XRP has no effect on the direction of Baloise Holding i.e., Baloise Holding and 21Shares Ripple go up and down completely randomly.
Pair Corralation between Baloise Holding and 21Shares Ripple
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the 21Shares Ripple. But the stock apears to be less risky and, when comparing its historical volatility, Baloise Holding AG is 14.59 times less risky than 21Shares Ripple. The stock trades about -0.03 of its potential returns per unit of risk. The 21Shares Ripple XRP is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 1,286 in 21Shares Ripple XRP on August 30, 2024 and sell it today you would earn a total of 2,463 from holding 21Shares Ripple XRP or generate 191.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. 21Shares Ripple XRP
Performance |
| Timeline |
| Baloise Holding AG |
| 21Shares Ripple XRP |
Baloise Holding and 21Shares Ripple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and 21Shares Ripple
The main advantage of trading using opposite Baloise Holding and 21Shares Ripple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, 21Shares Ripple 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 21Shares Ripple will offset losses from the drop in 21Shares Ripple's 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 |
| 21Shares Ripple vs. UBSFund Solutions MSCI | 21Shares Ripple vs. iShares Core SP | 21Shares Ripple vs. Baloise Holding AG | 21Shares Ripple vs. Autoneum Holding AG |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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