Correlation Between Baloise Holding and Invesco CoinShares
Can any of the company-specific risk be diversified away by investing in both Baloise Holding and Invesco CoinShares 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 Invesco CoinShares 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 Invesco CoinShares Global, you can compare the effects of market volatilities on Baloise Holding and Invesco CoinShares 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 Invesco CoinShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baloise Holding and Invesco CoinShares.
Diversification Opportunities for Baloise Holding and Invesco CoinShares
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baloise and Invesco is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Baloise Holding AG and Invesco CoinShares Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco CoinShares Global 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 Invesco CoinShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco CoinShares Global has no effect on the direction of Baloise Holding i.e., Baloise Holding and Invesco CoinShares go up and down completely randomly.
Pair Corralation between Baloise Holding and Invesco CoinShares
Assuming the 90 days trading horizon Baloise Holding AG is expected to generate 0.19 times more return on investment than Invesco CoinShares. However, Baloise Holding AG is 5.18 times less risky than Invesco CoinShares. It trades about -0.1 of its potential returns per unit of risk. Invesco CoinShares Global is currently generating about -0.12 per unit of risk. If you would invest 16,650 in Baloise Holding AG on September 13, 2024 and sell it today you would lose (250.00) from holding Baloise Holding AG or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baloise Holding AG vs. Invesco CoinShares Global
Performance |
| Timeline |
| Baloise Holding AG |
| Invesco CoinShares Global |
Baloise Holding and Invesco CoinShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baloise Holding and Invesco CoinShares
The main advantage of trading using opposite Baloise Holding and Invesco CoinShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baloise Holding position performs unexpectedly, Invesco CoinShares 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 Invesco CoinShares will offset losses from the drop in Invesco CoinShares' 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 |
| Invesco CoinShares vs. Baloise Holding AG | Invesco CoinShares vs. 21Shares Polkadot ETP | Invesco CoinShares vs. UBS ETF MSCI | Invesco CoinShares vs. BB Biotech 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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