Correlation Between Baloise Holding and Baloise Swiss
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Baloise Swiss 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 Baloise Swiss 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 Baloise Swiss Property, you can compare the effects of market volatilities on Baloise Holding and Baloise Swiss 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 Baloise Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Baloise Swiss.
Diversification Opportunities for Baloise Holding and Baloise Swiss
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baloise and Baloise is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Baloise Swiss Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baloise Swiss Property 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 Baloise Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baloise Swiss Property has no effect on the direction of Baloise Holding i.e., Baloise Holding and Baloise Swiss go up and down completely randomly.
Pair Corralation between Baloise Holding and Baloise Swiss
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 1.13 times more return on investment than Baloise Swiss. However, Baloise Holding is 1.13 times more volatile than Baloise Swiss Property. It trades about 0.05 of its potential returns per unit of risk. Baloise Swiss Property is currently generating about 0.03 per unit of risk. If you would invest 13,554 in Baloise Holding AG on September 19, 2024 and sell it today you would earn a total of 2,806 from holding Baloise Holding AG or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Baloise Holding AG vs. Baloise Swiss Property
Performance |
| Timeline |
| Baloise Holding AG |
| Baloise Swiss Property |
Baloise Holding and Baloise Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Baloise Swiss
The main advantage of trading using opposite Baloise Holding and Baloise Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Baloise Swiss 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 Baloise Swiss will offset losses from the drop in Baloise Swiss' 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 |
| Baloise Swiss vs. SPDR Dow Jones | Baloise Swiss vs. Baloise Holding AG | Baloise Swiss vs. Banque Cantonale du | Baloise Swiss 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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