Correlation Between Baloise Holding and JPMorgan ETFs
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and JPMorgan ETFs 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 JPMorgan ETFs 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 JPMorgan ETFs ICAV, you can compare the effects of market volatilities on Baloise Holding and JPMorgan ETFs 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 JPMorgan ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and JPMorgan ETFs.
Diversification Opportunities for Baloise Holding and JPMorgan ETFs
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baloise and JPMorgan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and JPMorgan ETFs ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan ETFs ICAV 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 JPMorgan ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan ETFs ICAV has no effect on the direction of Baloise Holding i.e., Baloise Holding and JPMorgan ETFs go up and down completely randomly.
Pair Corralation between Baloise Holding and JPMorgan ETFs
Assuming the 90 days trading horizon Baloise Holding AG is expected to under-perform the JPMorgan ETFs. In addition to that, Baloise Holding is 2.08 times more volatile than JPMorgan ETFs ICAV. It trades about -0.17 of its total potential returns per unit of risk. JPMorgan ETFs ICAV is currently generating about 0.19 per unit of volatility. If you would invest 9,333 in JPMorgan ETFs ICAV on September 19, 2024 and sell it today you would earn a total of 94.00 from holding JPMorgan ETFs ICAV or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. JPMorgan ETFs ICAV
Performance |
| Timeline |
| Baloise Holding AG |
| JPMorgan ETFs ICAV |
Baloise Holding and JPMorgan ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and JPMorgan ETFs
The main advantage of trading using opposite Baloise Holding and JPMorgan ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, JPMorgan ETFs 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 JPMorgan ETFs will offset losses from the drop in JPMorgan ETFs' 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 |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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